The Sri Lanka rupee opened marginally weaker on Wednesday, dealers said, while bond yields remained broadly steady as a large Treasury bill auction proceeded and equity markets traded lower.
Sri Lanka rupee opens marginally lower as Treasury bill auction proceeds and bond yields hold firm
The Sri Lanka rupee opened at 302.55/60 to the US dollar on Wednesday, a slight softening from Tuesday’s 302.52/59, according to market dealers. The modest movement in the currency reflected routine intra-day adjustments rather than any abrupt shift in market sentiment, dealers added, as liquidity conditions remained stable during early trading.
Bond markets showed little directional change, with dealers reporting a cluster of quoted yields across maturities. The bond maturing on 15 September 2027 was quoted at 8.85/95 percent, a small shift from 8.85/90 percent, while the 15 February 2028 issue was quoted at 9.05/10 percent. Longer-dated issues included the 15 June 2029 quote at 9.66/70 percent and the 15 September 2029 quote at 9.65/70 percent. The bond due 1 July 2030 was quoted at 9.77/83 percent, and the 15 December 2032 paper was quoted at 10.50/60 percent, slightly higher than prior prints. Overall, dealers described yields as broadly steady, suggesting limited immediate pressure on sovereign borrowing costs.
An auction of Treasury bills worth 33,500 million rupees was under way, drawing market attention as participants assessed fresh government paper supply against prevailing yield levels. Dealers said the outcome of the auction will be watched for signals about demand at current yield levels and possible short-term liquidity implications.
Foreign exchange telegraphic transfer rates showed the US dollar at 299.0000 buying and 306.0000 selling. The British pound quoted at 399.4985 for buys and 410.8603 for sells, while the euro registered 345.2228 buying and 356.5860 selling. These rates underscored the narrow spreads prevailing in electronic transfer markets during the session.
Equity markets traded in the red with the Colombo Stock Exchange’s All Share Price Index down 0.14 percent, a decline of 30.12 points to 22,133. The S&P SL20 index fell 0.22 percent, or 13.74 points, to 6,177. Market participants said the modest equity pullback mirrored the cautious tone across regional markets rather than a domestic shock.
Taken together, the small depreciation in the Sri Lanka rupee alongside broadly steady bond yields points to a calm trading session with market participants closely monitoring upcoming auctions and external cues for the next directional move.