Category: Economy and Markets

The Central Banks maiden 20-year treasury bond issue was snapped up at 6.08 percent as investors put in bids for Rs.4.24 bn.The issue carried a coupon of seven percent.rn rnHowever, the bank offered and accepted bids for Rs. 1.035 bn. rn rnThe issue will extend the yield curve from the present 15 years to 20-years, […]

Sri Lankas primary dealers signed up with Bloomberg to set up a bond-trading platform.At the moment the scripless securities system is not yet operational, but the electronic trading platform itself takes away some of the risks of the old market.rn rnldblquote In a bond market normally you deal on the word of mouth- the traders […]

So far, the bank has written to international rating agents, like Citibank and J P Morgan who currently have a local presence, about playing an advisory role in the rating process.rn rnPlans for a sovereign rating have been pending for several years, but have always been put off because of the war. rn rnBut a […]

Primary Dealers in government debt will be asked to raise their capital next year, as the Central Bank tries to strengthen the dealer network.The new regulations for dealers who operate in the primary government securities market comes, as the Central Bank steps up its drive to deepen the debt market.rn rnAt the moment primary dealers […]

The Central Bank cut its key short-term rates on Thursday, signalling that the economy was getting stronger.rnrnThe bank lowered its overnight repurchase rate (repo rate) by 50 basis points to 7.0 percent.rn rnThe reverse repurchase rate (reverse repo) was cut by 100 basis points to 8.50 percent, the bank said in a statement following its […]

Pan Asia Bank is coming out with an unlisted Rs. 400 mn debenture, to raise funds to boost its capital.The five-year issue is priced at floating rate of three percent above the six-months treasury bill rate. Six-month treasury notes are currently trading at 7.17 percent in the secondary market.rn rnThe bank said Tuesday that the […]

The Treasury of Sri Lankas largest state bank on Monday, snapped up the entire issue of the countrys first dollar denominated two-index linked commercial paper.Hayleys MGT Knitting Mills Ltd., the textile arm of the Hayleys Group, became the first local company to come out with a US$ 700,000 three month commercial paper.rn rnThe risk averse […]

Most of Sri Lanka quote s international trade is done in dollars (US) and significant movement in the US$-Rs rate, affects the pricing of both imports and exports.The rupee appreciated against the dollar over the last two months in line with the US currency quote s weakness against major currencies over the last eighteen months […]

Twenty-year government treasuries will hit the market on the 20th of this month, but debt market experts say the extended yield curve has failed to stimulate the corporate bond market.The yield curve that barely extended to two years has been extended to fifteen years by the issue of long-term treasuries.rn rnPublic debt department officials say […]

The Central Bank will launch its maiden 20-year treasury bond this month with an issue of Rs. 1 bn due on October 20.Superintendent Public Debt Dept, Dharma Dheerasinghe said the bank was hoping to raise Rs. 7.7 bn through Octobers borrowing programme.rn rnldblquote We have now revised it to include the 20 year issue, which […]