Sri Lanka rupee at 336.15/25 to US dollar spot, bond yields edge up as the local currency strengthened marginally against the US dollar on Tuesday, while government bond yields remained broadly steady amid ongoing activity in the domestic debt market.
Sri Lanka rupee at 336.15/25 to US dollar spot, bond yields edge up as T-bill auction continues
The Sri Lankan rupee was quoted at 336.15/25 per US dollar in the spot market, improving slightly from 336.20/35 recorded during the previous trading session, according to market dealers. The modest appreciation reflected stable trading conditions in the foreign exchange market, even as investors continued to monitor movements in government securities and liquidity conditions.
In the government bond market, yields were largely unchanged with only marginal movements across several maturities. Market participants said trading remained relatively subdued, with investors awaiting further signals from the Treasury bill auction and broader macroeconomic developments.
The bond maturing on 15 September 2029 was quoted at 11.20/25 percent, easing slightly from 11.20/30 percent a day earlier. Meanwhile, the 15 December 2029 bond remained unchanged at 11.25/30 percent, indicating limited movement in medium-term securities.
The 1 March 2030 maturity edged lower to 11.35/50 percent from 11.40/50 percent, while the 1 August 2030 bond rose marginally to 11.68/73 percent from 11.65/70 percent. Similarly, the 15 October 2030 bond was quoted at 11.68/75 percent, slightly higher than the previous 11.68/70 percent.
Longer-dated government securities also showed minimal changes. The 15 January 2033 bond remained steady at 12.25/30 percent, while the 15 June 2034 maturity held at 12.25/35 percent. The 1 July 2037 bond inched higher to 12.70/75 percent, compared with 12.65/75 percent previously.
Overall, the movement in yields suggested that investor sentiment remained broadly stable despite small adjustments in selected maturities. Dealers noted that the market continues to assess domestic liquidity conditions alongside expectations for future interest rate trends.
Attention was also focused on the government’s ongoing Treasury bill auction, where Rs. 140 billion worth of bills were offered to investors. The auction is expected to provide further indications of demand for short-term government securities and prevailing funding costs in the domestic market.
Meanwhile, official telegraphic transfer exchange rates showed the US dollar quoted at 331.75 buying and 340.75 selling. The euro was quoted at 374.8275 buying and 388.6083 selling, while the British pound traded at 439.9539 buying and 454.0623 selling.
Market participants will continue to watch developments in the Sri Lanka bond market and the Treasury bill auction for indications of investor confidence and liquidity trends. Currency movements are also expected to remain closely linked to foreign exchange inflows, import demand, and overall market sentiment as Sri Lanka continues its economic recovery.