Sri Lanka’s rupee ends firmer, bond yields ease

ECONOMYNEXT – Sri Lanka’s rupee closed stronger at 176.00/10 rupees to the US dollar in the spot market Monday, while bond yields eased, market participants said.

The rupee closed at 176.10/20 against the greenback on Friday.

Liquidity in the overnight money market increased to 26.05 billion rupees from 5.34 billion rupees on Friday.

Central Bank drained 6.25 billion rupees in an overnight repo auction at 7.72 percent.

Central Bank mopped up 15 billion rupees at 7.87 percent in a 7-day term repo.

In the secondary market, bond yields eased marginally in an active market, dealers said.

Activity in the market centered on the short tenor of the yield curve with 2021, 2023 and 2024 being the most liquid, dealers said.

Dealers said the activity centered on the short tenor of the yield curve because of Central Bank’s ceiling on fixed deposit interest rates which went in to effect from July.

A bond maturing on 15.10.2021 closed at 9.00/08 percent, falling from 9.03/08 percent.

A bond maturing on 15.03.2023 closed at 9.58/63 percent, down from 9.60/65 percent.

A bond maturing on 15.6.2024 closed at 9.82/85 percent, steady from 9.82/84 percent.

A bond maturing on 01.08.2026 closed at 10.03/13 percent, down from 10.05/12 percent.

A bond maturing on 15.01.2027 closed at 10.12/17 percent, falling from 10.15/18 percent.

A 10-year bond maturing on 01.05.2029 closed at 10.20/25 percent, declining from 10.25/30 percent.
(COLOMBO, 08 July, 2019)
 

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