ECONOMYNEXT – Sri Lanka bond market yields eased about 5 basis points again on Wednesday (01) however the overall market activity was limited on thin volumes, a dealer said.
Sri Lanka’s debt office offered and sold 60 billion rupees in a bills auction held today.
The 3-months bills of 18 billion rupees was sold at 7.23 percent from 7.53 pecent Weighted Average Yield last week.
The 6-month bills of 20 billion rupees was sold at 7.97 percent down 8.02 percent and the 12-month bills of 22 billion were sold at 8.12 percent down from 8.16 percent from last week’s weighted average yield rate.
Dealers said there was buying interest across the yield curve, not in volume but in rates.
He said the auctions those held recently were fully subscribed due a little postive momemtum driving the market at the moment.
Buying interest was seen across the yield curve.
The maturities came off almost 5 basis points since the previous day’s close.
Bonds maturing on 15.03.2024 closed at 9.10/15 percent on Wednesday, down from 9.15/20 percent on Tuesday’s close.
A bond maturing on 01.12.2024 closed at 9.15/25 percent on Wednesday, down from 9.25/35 at Tuesday’s close.
The newly auctioned bond maturing on 15.03.2025 closed at flat at 9.65/70 percent on Wednesday, from the previous day’s close.
A bond maturing on 15.01.2026 closed at 10.10/20 percent on Wednesday, down from 10.20/30 percent at the previous day’s close.
A bond maturing on 15.01.2027 closed at 10.65/70 percent on Wednesday from 10.70/80 percent at Tuesday’s close.
A bond maturing on 15.05.30 closed at 11.55/62 percent on Wednesday, narrower from 11.55/65 percent at Tuesday’s close.
A bond maturing on 15.03.2031 closed at 11.75/80 percent on Wednesday, down from 11.80/87 percent at Tuesday’s close.
Sri Lanka’s central bank on Thursday (25) kept rates at the current levels maintaining the Standing Deposit Facility Rate (SDFR) at 5.00 percent and the Standing Lending Facility Rate (SLFR) at 6.00 percent.
Sri Lanka’s official inflation index moved up above 8.0 per cent in October, the highest since 2017, after two years of money printing which began around September 2014.
Prices of various food staples have risen in the past few weeks.