Sri Lanka’s Public Debt Management Office sold Rs92.55 billion in 2030 and 2032 Treasury bonds at a primary auction, while bids for a 2037 bond were not accepted, according to data from the debt office.
Of an offered Rs70 billion in 15 May 2030 (LKB01530E152) bonds, Rs44.95 billion was accepted at an average yield of 11.65 percent. Of an offered Rs60 billion in 15 December 2032 (LKB00832L158) bonds, Rs47.59 billion was accepted at an average yield of 12.69 percent. Bids submitted for the 01 July 2037 (LKB01237G019) bond were rejected. The total offer volume across the three tenors was Rs150 billion.
The auction settled as bond yields rallied in the secondary market on Friday, with a bond maturing on 15 December 2032 quoted at 12.50/65 percent, down from 12.50/13.00 the previous day, and the rupee firmer at 335.50/336.00 to the US dollar. Dealers attributed the rally to optimism around a US-Iran peace deal announced from the Oval Office that sent Brent crude down 4.4 percent to around $89 a barrel.
Sri Lanka’s Public Debt Management Office had also tapped an additional Rs3.51bn of Treasury bills on Friday, taking this week’s bill sales to Rs75.25bn, with the 3- and 6-month tenors closing at 10.09 and 10.27 percent respectively. The Central Bank held its policy rate steady at the June 11 Monetary Policy Board meeting, with Governor Nandalal Weerasinghe briefing Parliament’s Committee on Public Finance on the rupee and external-sector outlook the same morning.
Source: EconomyNext.
