Sri Lanka rupee steady, bond yields up on auction day
CONOMYNEXT – Sri Lanka’s bond yields were up about 10 to 15 basis points ahead of a bond auction late in the day, and the rupee was steady, dealers said.
Stocks were flat in late morning trade with the Colombo Stock Exchange All Share Index at 6,575.51 points, up 0.12 points.
In forex markets the spot US dollar was quoted at 155.15/25 to the US dollar, almost unchanged from Friday’s close.
In bond markets, 01.03.2021 bonds were quoted at 9.80/9.90 percent, levels after the bond auction closed but before results were announced, dealers said. The bond was quoted at 9.70/75 percent levels late Friday.
A 01.08.2026 bond was quoted at 10.20/35 percent Monday up from Friday’s 10.15/25
A 15.05.2030 bond was quoted at 10.45/55 percent up from Friday’s 10.40/45 percent.
Sri Lanka’s central bank has offered 25 billion rupees of 2021 bonds and 15 billion rupees of 2025 bonds.
Sri Lanka has revamped its auctions to be more transparent though cut-off yields are still kept secret.
But the system has draconian allocation procedures, which can kill dealers in a situation where rates are moving up and the debt office wants to control them, economic analysts say.
The system was started after the end of a balance payments crisis, when rates were moving down. (Colombo/Feb26/2018)