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Bloomberg Comment – 09-07-2018

LKR Yields Seen Rising Ahead of Bond Issuance: Inside Sri Lanka
2018-07-09 04:45:31.873 GMT
By Anusha Ondaatjie

(Bloomberg) — Sri Lankan bond yields may come under upward pressure ahead of a bond issuance later this month.

* “The shorter end of the yield curve could move up in very thin volumes, as the market holds back to see the rates on the upcoming bond auction,” says Dimantha Mathew, head of research at First Capital in Colombo

* NOTE: Sri Lanka plans to issue 80b rupees ($503m) of 8- year and 15-year bonds in July, according to the central bank website

* Yield on 10.75% govt bonds due March 2021 rose 6bps on Friday to 10.05%, according to data compiled by Bloomberg

* USD/LKR rose 0.6% to 159.20 last week, the most since five days ended April 27 and snapping two previous weeks of decline

* Overseas investors sold a net $1m of local stocks on Friday, taking outflows for this month to $5.7m: exchange data