Sri Lanka bond auction yields slip

July 27, 2010 (LBO) – Sri Lanka’s 5-year bond yields slipped 28 basis points to 9.62 percent and 6-year bonds fell 22 basis points to 9.68 percent on Tuesday from an auction on July 15, results released by the government debt office showed. Four year bonds (01-04.2014) were traded around 9.48 and closed at closed at 9.48/52, 3-year bonds (01-02-2013) at 9.22 and two year (15-04-2012) bond which were heavily traded were quoted around 9.10/15 dealers said. The government sold 1.0 billion rupees worth 5-year bonds and 500 million rupees worth of 6-year bonds, the same amount of bonds were offered at the sale.

The 01.09.2015 bond matures in 5 years 2 months and pays a coupon rate of 11 percent while the 01.04.2016 bond matures in 5 years 9 months which pays a coupon rate of 7.25 percent.

After the auction 5-year bonds were quoted around 9.60/65 percent in the secondary market, up slightly from around 9.60 earlier in the day, dealers said.