ECONOMYNEXT – Sri Lanka’s bond market saw quotes in several maturities dealers said with some of the shock from a ‘Stage II’ auction intervention wearing off after strong genuine buyer interest in 3-month bonds lowered auction yields.
After a market holiday Wednesday 3-month bills were quoted around 7.85/95 levels. At Tuesday’s auction 3-month auction yield fell to 8.18 percent from 8.43 percent with strong demand.
On Thursday several bonds were quoted recovering from a shock last week, when a 2025 bond auction was failed with the deployment of a so-called ‘Stage II’ auction one of several tools of financial repression developed during the ousted ‘Yahapalana’ administration.
A 01.12.2024 bond was quoted at 9.30/60 percent from an earlier 9.35/75 percent.
A 15.03.2025 bond was quoted at 9.85/10.00 percent. The auction bonds were at a weighted average yield of 9.94 percent.
A 15.01.2026 bond was quoted at 10.40/45 percent
A 10.01.2027 bond was quoted at 11.05/15 percent from an earlier 11.00/15 percent.
A 01.09.2028 bond was quoted at 11.50/55 percent.
In forex markets the rupee is officially at 203 to the US dollar with heavy rationing on priority lists.
For several days banks have been trying to find dollars to clear a LP Gas ship.
Some dollars are transferred around 225 to the US dollars. Kerb market rates are higher. (Colombo/Nov05/2021)