Sri Lanka rupee stronger, interest in bills, bond yields slightly up
ECONOMYNEXT – Sri Lanka’s rupees was stronger and one year bills were actively quoted following two auctions where no money was printed, but bond yields were marginally up, ahead of an auction, dealers said.
The spot US dollar was quoted at 155.15/20 to the US dollar Thursday morning, up from Wednesday’s close of 155.20/30 to the US dollar. The rupee also closed stronger Wednesday from Tuesday’s close of 15545/55 to the dollar.
The central bank’s selling of all bid offered and allowing rates to move up without printing money has helped brought confidence to the market, dealers said.
Bills are also being actively quoted in the market. The one year bill was quoted at 9.45/55 percent on Thursday. At Wednesdays’ auction the weighted average 12-month yield rose 17 basis points to 9.45 percent.
The auctions are still not fully transparent as cut-off yields are kept secret.
Bonds were about 5 to 10 basis points higher from Wednesday’s closing with a 40 billion rupee auction called for February 26, dealers said.
A 3-year bond maturing on 01.03.2021 was quoted at 9.80/95 down from yesterday’s 9.75/85 percent.
An 8-year bond maturing on 01.06.2026 was quoted at 10.35/45 down from yesterday’s close 10.35/45 percent after rising about 05 basis points.
An 8-year bond maturing on 01.08.2026 was quoted at the same levels.
A 12 year bond maturing on 15.05.2030 was quoted at 10.55/70 down from yesterday’s 10.50/60 levels.
The central bank has called offers for 25 billion rupees of 3-year 01.03.2021 bonds and 15 billion rupees of 01.08.2025 bonds. (Colombo/Feb22/2018)