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Sri Lanka bond yields down after spike, forex tight | EconomyNext - EconomyNext

Tuesday December 28, 2021 10:08 am

Tuesday December 28, 2021 10:08 am

ECONOMYNEXT – Sri Lanka bond yields eased slightly Tuesday after spiking a day earlier, dealers said as the foreign exchange continues to be tight amid sterilized interventions.

A 01.05.2025 bond was quoted at 11.10/15 percent Tuesday morning. The yield spiked to 11.20/25 percent on Monday from 10.75/85 levels on Friday.

“The forex surrender rule was a negative,” a market participant said.

The central bank raised a forex surrender rule on banks to 25 percent Monday from an earlier 10 percent.

On Tuesday 01.01.2029 and 15.05.30 was quoted 11.30/12.00 percent down from 11.90/12.00 a day earlier and 11.95/12.02 percent on Friday.

Other tenors were not active.

Bills were not active but 3-months were offered at around 7.75 percent.

Meanwhile, media reports said Sri Lanka’s goods importers had complained that the central bank was not releasing dollars to the market at the soft-pegged rate of 200 to the US dollar.

Trade Minister Bandula Gunewardene told Sri Lanka’s Derana Television that he hopes more dollars would become available in January. (Colombo/Dec28/2021)