Sri Lanka’s 5 and 15-yr bond yields fall on auction

ECONOMYNEXT – Sri Lanka sold 10.39 billion rupees of 5 and 10 year bonds Friday with yields plunging after the sovereign bond sale, ahead of a large bond maturity on November 02.

The debt office sold 3.69 billion rupees of 5 year bonds maturing on 01.05.2020 at an average yield of 8.99 percent, sharply down from 9.58 percent at an auction on September 15.

Sri Lanka also sold 6.7 billion rupees of 15-year bond maturing on 15.05.2030 at an average yield of 10.33 percent.

On September 09, similar maturity bond were sold at 10.96 percent.

On November 02, and 70 billion rupees of bonds are coming up for maturity.

On October 26, another 45.4 billion rupees of bonds were rolled over with settlement on November 02, indicating that 55.8 billion rupees of bonds have been rolled over so far.

There are also coupon payments on this maturity and others due on the date. Some of the bonds are held by foreign investors.

Sri Lanka sold a 1.5 billion US dollar sovereign bond this week, which has pushed yields down ahead of any receipts coming to the country. However more debt was monetized at Wednesday’s auction with about 12 billion rupees being printed to keep short term gilt yeilds down.

The Central Bank also sold 330 million dollars of floating rate dollar bonds with settlement on October 19, but the proceeds were taken into foreign reserves with domestic liquidity sterilized data showed. (Colombo/Oct30/2015)

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