Sri Lanka rupee up on intervention, bond yields spike amid foreign selling

Sri Lanka rupee up on intervention, bond yields spike amid foreign selling COLOMBO (EconomyNext) – Sri Lanka’s rupee rose to 133.90 to the US dollar in the spot market after the intervention rate was raised 20 cents and bond yields spiked across maturities amid foreign selling, dealers said.

A state bank that usually acts for the monetary authority was selling dollars at 133.90 Monday, up from 134.10 Friday, dealers said.

In the bond market yields spiked across maturities with foreign investors selling 6, 7 and 8 year bonds dealers said, pushing up yield by 20 to 40 basis points.

Bond yield also rose on Thursday and Friday amid foreign selling. Treasuries holdings by foreign investors rose fell 435.8 billion rupees on June 17, down from 455 billion rupees on May 13.

Sri Lanka loosened monetary policy in the 2015 pouring liquidity into money markets and cutting policy rate as fiscal policy deteriorated with state wage hikes, subsidies and fuel price cuts.

Seven year bonds maturing on 01.07.2022 were quoted at 9.20/30 percent levels up from 8.85/95 levels Friday.

A summary of bond yields at early afternoon Monday are given below

3-year bonds maturing on 01.06.2018 – 7.90/8.00 percent up from Wednesday’s 7.80/85

4-yuear bonds maturing on 15.09.19 – 8.15/30 percent up from Wednesday’s 8.06/10

5-year bonds maturing on 01.05.2020 – 8.45/65 percent up from Wednesday’s 8.25/40

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6-year bonds maturing on 01.08.2021 – 9.10/20 percent up from Wednesday’s 8.80/85

7-year bonds maturing on 01.07.22 – 9.20/30 percent up from Wednesday’s 8.85/95

8-year bonds maturing on 01.09.2023 – 9.30/35 percent up from Wednesday’s 8.98/9.03

9-year bonds maturing on 01.01.2024 – 9.35/50 percent up from Wednesday’s 9.05/15

10-year bonds maturing on 15.03.25 – 9.25/45 percent up from Wednesday’s 9.05/9.20

15-year bonds maturing on 15.05.2030 – 9.40/60 percent up from Wednesday’s 9.35/50

  20-year bonds maturing on 15.03.35 – 9.55/95 percent up from Wednesday’s 9.45/80

30-year bond maturing on 01.03.2045 – 10.40/90 percent up from Friday’s 10.35/75.

 

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