Wednesday March 31, 2021
ECONOMYNEXT – Sri Lanka’s rupee closed down at 199.75/201 to the one week US dollar on Wednesday amid continued money printing, while gilt yields were, dealers said.
The rupee last closed in the one-week forward market at 199/200 to the US dollar on Tuesday.
The spot US dollar also closed at 199.50/200 Tuesday.
Sri Lanka’s rupee had been falling steadily amid unprecedented money printing to finance a deficit but weak private credit kept current transaction somewhat in check.
In the secondary market bond yields are flat in dull market trade, dealers said.
Dealers say the market is waiting for some direction with liquidity falling and the treasuries auction undersubscribed.
Sri Lanka has failed to sell 77 per cent of Treasuries offered at an ‘auction’ on March 30.
Last week the central bank’s Treasury bill stock went up by 18 billion rupees to 824 billion rupees after 74 per cent failed to be sold.
Up to last week, 117 billion rupees had been printed and short banks had borrowed another 46 billion rupees from the central bank’s overnight window.
The reserve outflow had been higher than the liquidity injected.
A bond maturing on 15.12.2022 closed at 5.85/92 per cent on Wednesday, down from 5.87/95 per cent on Tuesday.
A bond maturing on 15.11.2023 closed at 6.30/38 per cent, up from 6.27/35 per on Tuesday.
A bond maturing on 01.12.2024 closed at 6.65/75 per cent, up from 6.63/73 per cent.
A bond maturing on 01.05.2025 closed flat at 6.75/95 per cent on Wednesday.
A bond maturing on 15.02.2026 closed flat at 7.00/15 per cent on Wednesday.
A bond maturing on 15.08.2027 closed flat at 7.40/60 per cent on Wednesday.
A bond maturing on 01.05.2029 closed at 8.00/20 per cent on Wednesday, up from 7.90/20 per cent.
A bond maturing on 15.05.2030 closed at 8.00/30 per cent unchanged from Tuesday. (Colombo/March31/2021)