Sri Lanka’s rupee ends flat, bond yields ease

ECONOMYNEXT – Sri Lanka’s rupee closed at 176.10/20 rupees to the US dollar in the spot market Friday unchanged from a day earlier, while bond yields continued to ease on buying interest, market participants said.

The rupee ended firmer against greenback this week compared to last week’s closing of 176.40/45 rupees.

Liquidity in the overnight money market was 5.34 billion rupees, down from 9.01 billion rupees previous day and there was no overnight or term repo for the day.

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

Dealers said the positive momentum in the economy has resulted in continuous buying in the market.

Yields continued to dip throughout the week after a shift from fixed deposits to government securities began last Friday as the central bank slapped more controls on retail deposit rates.

Activity centered on the short and mid-end of the curve with 2021 and 2024 maturities being the most liquid, a dealer said.

A bond maturing on 15.10.2021 closed at 9.03/08 percent, falling from 9.12/318 percent the previous close.

A bond maturing on 15.03.2023 closed at 9.60/65 percent, easing from 9.70/78 percent.

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A bond maturing on 15.6.2024 closed at 9.82/84 percent, down from 9.85/89 percent.

A bond maturing on 01.08.2026 closed at 10.05/12 percent, falling from 10.08/18 percent.

A bond maturing on 15.01.2027 closed at 10.15/18 percent, declining from 10.17/21 percent.

A 10-year bond maturing on 01.05.2029 closed at 10.25/30 percent, easing from 10.28/32 percent. (COLOMBO, 05 July 2019)

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