Sri Lanka bond auction yields below market

Feb 13, 2012 (LBO) – Sri Lanka has sold three and five year bonds through an auction Monday at rates below the secondary market, data from the state debt office showed. The debt office which is a unit of the Central Bank said it sold 3.0 billion rupees of bond maturing on 15 June 2015 at a weighted average yield of 10.20 percent.

In the secondary market a slightly longer bond maturing on 15 August 2015 was quoted at 11.50/75 percent, dealers said.

A 15 July 2017 bond had also been was sold to yield 10.75 percent, the debt office said, raising two billion rupees.

The state sometimes sells bonds to so called ‘captive sources’ such as a retirement fund of private sector workers, below market prices.

In forex markets, the rupee weakened to 116.60/90 levels against the US dollar after opening at 115.20/30 levels in the spot market with the Central Bank staying off the market.