Sri Lanka’s bond market remains inactive on Wednesday (24) but bill yields have marginally eased in mid-morning trade dealers said, while the rupee was quoted around 295 with no firm offer.
The rupee was quoted as weak 295/325 to the US dollar at the previous day’s close.
Commercial Banks were offering to sell dollars for telegraphic transfers at 285 to 290 rupees and was buying at 275 rupees on Wednesday.
Analysts had warned that a surrender requirement imposed by the central bank goes against the rupee and is a stumbling block to the attempt at floating the rupee. However the surrender requirement was doubled on Wednesday.
In the money market, the central bank had not updated Thursday’s rates at the time of filing.
The central bank’s indicative spot rate was 280.42 dollars on Wednesday.
Market participants said the rupee is quoted around 295/325 against the dollar.
Commercial banks offered to sell dollars at 284.99 rupees for telegraphic transfer and buy at 274.99 rupees on Wednesday.
Bond markets were also inactive.
In the secondary market, the only liquid bond maturing on 01.08.2024 closed at 14.50/15.00 percent on Wednesday.
The 12-month bill was quoted 12.10/20 percent, from 10/30 percent on Wednesday.
At the weekly bills auction held on Wednesday, Sri Lanka’s debt office offered and sold 56.5 billion rupees.
The bills were split into 20 billion maturing in 3-months, 15 billion in 6-months and 21.5 billion in 1-year.
Three months bills moved up 75 basis points, 6-months moved up 93 basis points and 1-years up 85 basis points.