(Bloomberg) — Sri Lanka’s bond prices rose after the government’s cost of borrowing declined at an auction Wednesday.
* Central bank sold 4b rupees ($23m) of 91-day bills at 9.24%, down from 9.39%, 4b rupees of 182-day bills at 9.50%, down from 9.67% at previous auction, and 20b rupees of 364-day notes at 10.15% versus 10.40%
** The bank offered a total 28b rupees of bills, with 106b rupees of bids received
* “Positive liquidity and expectations of a rate cut are driving yields down,” says Dimantha Mathew, head of research at First Capital in Colombo.
* NOTE: Central Bank of Sri Lanka to announce monetary policy decision on April 8 at 4:30 pm Colombo time
* Yield on 10.9% govt bonds due March 2024 down 9bps at 10.80%
* USD/LKR marginally changed at 174.77 after it snapped three days of declines on Wednesday
* Overseas investors bought a net $1.2m of local stocks on Wednesday, taking net inflows for the month to $3.3m: exchange data