Friday, 29 December 2017

Sri Lanka sells 3 and 8 year bonds

ECONOMYNEXT - Sri Lanka has sold 30 billion rupees of 3 and 8 year bonds, the debt office said, amid falling interest rates and slowing credit and improving budgets in the economy.

The debt office sold 8.0 billion rupees of 2 year 11 month bonds maturing on 15 December 2020 at a weighted average yield net of tax of 9.55 percent.

On 01 November 2017, 2-year bonds were auctioned at 9.92 percent.

It also sold 22 billion rupees of 8 year 5 month bonds maturing on 01 June 2026 at a yield of 10.06 percent.

On 01 November 2017 8-year bonds were sold at 10.33 percent.

Sri Lanka is now emerging from a balance of payments crisis and the credit cycle is slowing with an improving budget deficit and slower private credit, allowing the central bank to collect forex reserves.

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