ECONOMYNEXT – Sri Lanka’s stocks opened higher Monday in thin trading but bond markets but bond markets were dull after foreign selling pushed up medium term yields, brokers and traders said.
Dilmah Ceylon Tea Company rose 139 rupees in mid-morning trade with 21 shares traded and Colombo Dockyard rose 6.80 rupees to 79.00 rupees with 359 shares traded.
Bond markets have dried up with medium term rates moving up and were inactive Monday dealers said. Bond markets were inactive for the second day, after some active trading was seen on Thursday.
"The rates are going up and investors are going into a shell," a dealer said.
"Year-end seasonal mentality is also coming in."
Medium term bond yields from 2 to 5 years have edged higher in recent days amid foreign selling dealers said, though longer term yields were steady.
The have been no recent bond auctions but bill yields have edged lower after the central bank started to print money and buy up bonds to sterilize interventions in the forex market.
Some bond quotes seen at mid-day are given below, mostly unchanged from last week:
2-year bonds maturing on 15.08.2018 were quoted around 11.45/65 percent compared to trades on Wednesday at 11.60 percent.
3-year (15.09.2019) bonds were quoted around 11.75/80 percent against Thursday’s 11.85 percent.
5-year (01.08.2021) bonds were quoted at 12.15/35 percent compared 12.19 percent.
7-year (08.9.2023) bonds were quoted at 12.42/52 percent.
8-year (01.08.2024) bond were quoted at 12.50/60 percent compared to 12.50
10-year (01.08.2026) bonds were quoted at 12.60/75 percent compared to 12.60 percent. (Colombo/Dec05/2016)