Sri Lanka bond yields edge up

Sri Lankan Police forming a human chain in parliament to protect the Speaker and enable a vote.

Sept 23, 2011 (LBO) – Sri Lanka’s bond yields edged up over the week with liquidity in interbank markets tightening, and the yield on a 2016 bond fell back after breaching 9.0 percent, dealers said. Partially expired bonds were slightly higher. Dealers say there is usually an arbitraged gap between bills and partially expired short maturity bonds.

The 2016 bond was quoted around 8.95/9.00 percent Friday after deals were done at 9.05 a day earlier. The bond was quoted around 8.70/75 a week earlier and 8.60/65 two weeks ago.

The 2015 bond was quoted around 8.80/90 up from 8.52/58 levels a week earlier, dealers said. 2014s were quoted around 8.20/25 from around 8.07/12 levels.

In the secondary market, partially expired three month bonds were quoted higher than this week’s weighted average auction rate of 7.14 percent.

Three bills were quoted around 7.20/25 slightly higher than the 3-month auction rate of 7.14 percent.