Sri Lanka’s rupee closes stronger, bond yields fall

ECONOMYNEXT- Sri Lanka’s rupee closed stronger at 181.15/25 to the US dollar in the spot market on Friday while bond yields were stable, dealers said.

The rupee closed at 181.40/60 to the US dollar in the spot market on Thursday.

In the money market, overnight liquidity fell to 9.52 billion rupees from 13.07 billion rupees.

The central bank injected 10 billion rupees in an overnight reverse repo auction at 7.53 percent, while increasing its holdings of government bonds by 1.13 billion rupees.

In the government securities market, there was some activity while yields fell with the 15.09.2024 bond the most liquid, dealers said.

A bond maturing on 15.12.2021 was quoted at 8.60/80 percent on Friday, flat from Thursday’s close.

A bond maturing on 15.07.2023 closed at 9.45/55 percent, falling from 9.50/60 percent.

A bond maturing on 15.09.2024 was closed at 9.78/83 percent, down from 9.82/88 percent.

A bond maturing on 15.10.2027 closed at 10.00/10 percent, falling from 10.10/18 percent.

A bond maturing on 15.09.2034 closed at 10.30/50 percent, stable from 10.30/45 percent. (Colombo/Dec06/2019)