ECONOMYNEXT – Sri Lanka secondary market quoted about 50 basis points higher Friday from before a rate hike on Wednesday, dealers said.
In the second bonds market, quotes were wide after a rate hike.
“The two way quotes are very wide at the moment and there can be some direction after the next auction” a dealer said. said.
Dealers said the rate hike by the CBSL did not affect the bond rates significantly.
Central bank raised its rates by 50 basis points to ease the pressure on the currency and stabilize the external sector.
A bond maturing on 15.03.2025 quoted at 11.00/40 percent up from 10.90/11.10 on Wednesday before the rate hike.
A bond maturing on 15.12.2027 quoted at 11.50/12.00 from up from 11.35/55 on Wednesday before the rate hike.
A bond maturing on 15.09.2024 quoted at 10.15/50 percent flat from Thursday closing.
The buying rate for telegraphic transfers was 198.5008 and the selling rate was at 202.9992 on Friday.
On Thursday (20) Sri Lanka sold 11.35 million US dollars of dollar denominated bonds after calling bids for a 100 million US dollar auction.
The debt office accepted only 0.16 million dollars of 5-months bond for which 60.8 million dollars at 7.70 percent.
0.52 million dollars of 9 month bonds were sold at 7.86 percent after getting bids for 3.53 million dollars.
10.62 million US dollars of 1 year 2 month bonds were sold for 8.0 percent, after getting bids for 21.63 million dollars.
0.05 million dollars of 2-year 3-month bonds were sold after getting 0.05 percent at 8.0 percent.
An issuance window will be open till January 21, 3.00 pm
The central bank’s indicative spot rate was 201.7844 on Thursday (13), up from 200.9798 on Wednesday (12).