Sri Lanka rupee at 336.35/40 to US dollar spot remained broadly stable in Thursday’s trading, while government securities recorded lower yields across several maturities, reflecting continued investor interest in the domestic debt market.
Sri Lanka rupee at 336.35/40 to US dollar spot as bond yields edge lower in trading
The local currency was quoted at 336.35/40 per US dollar in the spot market on Thursday, compared with 336.30/70 recorded during the previous trading session, according to market dealers. The marginal movement indicated a relatively steady Sri Lanka exchange rate, with limited volatility in the foreign exchange market.
Meanwhile, the telegraphic transfer (TT) rate for the Sri Lankan rupee against the US dollar stood at 331.50 for buying and 341.09 for selling, reflecting prevailing commercial banking rates for foreign currency transactions.
Activity in the government securities market showed a broadly positive trend as Sri Lanka bond yields eased on several benchmark maturities, suggesting continued demand for sovereign debt despite relatively subdued market activity.
The Treasury bond maturing on 15 December 2029 remained unchanged, quoted at 10.95/11.05 percent, while the bond maturing on 1 March 2030 also traded flat at 11.05/11.15 percent.
Further along the yield curve, several maturities registered modest declines. The bond maturing on 15 May 2030 was quoted at 11.10/11.20 percent, improving from the previous day’s 11.15/11.25 percent. Likewise, the 1 August 2030 maturity eased to 11.25/11.28 percent, compared with 11.30/11.38 percent a day earlier.
The 15 October 2030 Treasury bond was quoted at 11.30/11.35 percent, down from 11.36/11.38 percent, continuing the broader trend of declining yields across medium-term government securities.
Longer-dated bonds also recorded gains. The 15 December 2032 maturity fell to 11.55/11.60 percent from 11.65/11.70 percent, while the 15 January 2033 bond eased to 11.60/11.65 percent, compared with 11.65/11.75 percent in the previous session.
The bond maturing on 1 November 2033 remained unchanged at 11.65/11.75 percent, indicating stable investor pricing for that maturity.
Among longer-term securities, the 15 June 2034 Treasury bond declined to 11.67/11.72 percent from 11.70/11.80 percent, while the 15 August 2036 maturity was quoted at 11.88/11.95 percent, improving from 11.90/12.00 percent recorded previously.
Overall, Thursday’s market reflected a combination of a stable currency and firmer demand for government securities. While the Sri Lanka rupee at 336.35/40 to US dollar spot showed little change against the US dollar, the easing in Sri Lanka bond yields across several maturities pointed to improved sentiment in the domestic fixed-income market.
Market participants continue to monitor both the Sri Lanka exchange rate and movements in Treasury securities for indications of liquidity conditions, investor confidence and broader macroeconomic trends. The combination of a relatively stable currency and softer bond yields remains closely watched by investors, financial institutions and businesses assessing market conditions in the period ahead.