Currency Gains Slightly in Spot Market; Equities Continue Rally Ahead of Treasury Bill Auction
Sri Lanka’s rupee opened stronger in the spot market on Tuesday, July 1, trading at 299.95/300.05 per US dollar, an improvement from 300.15/300.30 recorded the previous day, dealers reported. The marginal appreciation reflects continued market confidence, bolstered by external stability and controlled monetary policy.
Bond yields remained broadly stable. The yield on the bond maturing on February 15, 2028 was quoted at 8.70/8.75 percent, while the bond maturing on December 15, 2029 saw a slight uptick, quoted at 9.35/9.45 percent, up from 9.35/9.42 percent the previous day. Bonds maturing on March 15, 2031 and November 1, 2033 were quoted flat at 9.90/10.05 percent and 10.60/10.70 percent, respectively, indicating stability in the longer end of the yield curve.
Meanwhile, equity markets also opened higher. The All Share Price Index (ASPI), which hit an all-time high on Monday, gained a further 0.10 percent or 17.93 points, reaching 18,044, while the S&P SL20 Index rose 0.05 percent or 2.93 points to stand at 5,355, reflecting continued investor optimism.
The Central Bank of Sri Lanka announced that it will issue Rs. 113 billion worth of Treasury bills through an auction scheduled for July 2, which is expected to attract significant investor interest as markets look to gauge short-term fiscal signals.