Borrowing Cheap

Sri Lankan Prime Minister Ranil Wickremasinghe (2nd R) arrives to visit the site of a bomb attack at St. Anthony's Shrine in Kochchikade in Colombo on April 21, 2019. - A string of blasts ripped through high-end hotels and churches holding Easter services in Sri Lanka on April 21, killing at least 156 people, including 35 foreigners. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

The governments inaugural 10-year bond issue to raise Rs. 1 bn was oversubscribed by nearly eight times on Friday.
The issue carries an annual 8.5 percent coupon, as opposed to the quarterly and half-yearly coupons offered on present treasury bonds.rn

rnThe Central Bank said it accepted Rs. 1 bn worth of bids at a 9 percent yield. However, on Fridays close, five-year bonds were trading at 9.80 percent on the secondary market.rn

rnDealers expect yields to slip further in line with Central Banks policy of lowering short-term rates and ample liquidity in the market.rn