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» SAMP.N0000 (SAMPATH BANK PLC)
Sri Lanka makes second forced bond sale, yields up EmptyToday at 6:58 pm by NIRMALSG

» Future of Tea Industry
Sri Lanka makes second forced bond sale, yields up EmptyToday at 6:54 pm by hammurabi

» Dividend Announcement
Sri Lanka makes second forced bond sale, yields up EmptyToday at 5:30 pm by Ethical Trader

» Cricket !
Sri Lanka makes second forced bond sale, yields up EmptyToday at 2:22 pm by කිත්සිරි ද සිල්වා

» TPL.N0000 (TALAWAKALE PLANTATIONS )
Sri Lanka makes second forced bond sale, yields up EmptyToday at 1:56 pm by yellow knife

» DIPD.N0000 (Dipped Products)
Sri Lanka makes second forced bond sale, yields up EmptyToday at 11:40 am by Ethical Trader

» Access Engineering AEL Technical Analysis
Sri Lanka makes second forced bond sale, yields up EmptyToday at 4:34 am by NIRMALSG

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
Sri Lanka makes second forced bond sale, yields up EmptyYesterday at 9:14 pm by hammurabi

» Thread for News on CSE and SL Economy
Sri Lanka makes second forced bond sale, yields up EmptyYesterday at 8:52 pm by NIRMALSG

»  Rajgama heroes !
Sri Lanka makes second forced bond sale, yields up EmptySat Jun 22, 2019 9:44 pm by spw19721

» මිල සූත්‍රය වැරදුණාද, වැරැද්දුවාද?
Sri Lanka makes second forced bond sale, yields up EmptyFri Jun 21, 2019 5:25 pm by Ethical Trader

» First capital holdings
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 20, 2019 5:57 pm by serene

» Happy Father's Day !
Sri Lanka makes second forced bond sale, yields up EmptyMon Jun 17, 2019 8:58 pm by spw19721

» DPL.N0000 (Dankotuwa Porcelain PLC)
Sri Lanka makes second forced bond sale, yields up EmptySun Jun 16, 2019 7:12 am by NIRMALSG

» Re: Financial reports Q1-2019
Sri Lanka makes second forced bond sale, yields up EmptyFri Jun 14, 2019 8:57 pm by dhanurrox

» SEYB.N0000 ( SEYLAN BANK PLC )
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 8:11 pm by ruwan326

» NTB.N0000 (NATIONS TRUST BANK PLC)
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 8:08 pm by ruwan326

» PABC.N0000 (Pan Asia Banking Corporation PLC)
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 8:06 pm by ruwan326

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 7:58 pm by ruwan326

» HNB.N0000 ( Hatton National Bank PLC)
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 7:57 pm by ruwan326

» HDFC.N0000 (HOUSING DEVELOPMENT FINANCE CORPORATION BANK OF SRI LANKA)
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 7:48 pm by ruwan326

» DFCC.N0000 ( DFCC BANK PLC )
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 7:45 pm by ruwan326

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 7:43 pm by ruwan326

» අනං මනං! #/+?.<>
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 13, 2019 8:07 am by ruwan326

» Should CSE be like this? Whose FAULT is it?
Sri Lanka makes second forced bond sale, yields up EmptyWed Jun 12, 2019 5:21 pm by Yin-Yang

» CCS.N0000 ( Ceylon Cold Stores)
Sri Lanka makes second forced bond sale, yields up EmptyTue Jun 11, 2019 9:15 pm by ruwan326

» MCPL.N0000
Sri Lanka makes second forced bond sale, yields up EmptySun Jun 09, 2019 12:15 pm by ruwan326

» Tourism sector
Sri Lanka makes second forced bond sale, yields up EmptySun Jun 09, 2019 6:53 am by NIRMALSG

» LOFC Initiating Coverage - STRONG BUY - 29 03 17 - FC Research
Sri Lanka makes second forced bond sale, yields up EmptyFri Jun 07, 2019 5:42 am by stockback

» Easter Sunday Attack and Sri Lanka
Sri Lanka makes second forced bond sale, yields up EmptyThu Jun 06, 2019 9:13 am by ruwan326

» In the Meantime, Within Our Shores !
Sri Lanka makes second forced bond sale, yields up EmptyMon Jun 03, 2019 2:14 pm by කිත්සිරි ද සිල්වා

» What to Analyse
Sri Lanka makes second forced bond sale, yields up EmptySun Jun 02, 2019 7:11 am by Leon

» Tolerance at its Best !
Sri Lanka makes second forced bond sale, yields up EmptyThu May 30, 2019 10:50 am by Yin-Yang

» විශ‍්‍රාම ගැන්වීමේ වයස් සීමාව ඉහළ දැමීමට මහ බැංකුවෙන් යෝජනාවක්
Sri Lanka makes second forced bond sale, yields up EmptyTue May 28, 2019 8:03 am by කිත්සිරි ද සිල්වා

» සදහම් අටුවාව
Sri Lanka makes second forced bond sale, yields up EmptyTue May 28, 2019 7:07 am by ruwan326

» බැරි වෙලා වත් අනික් පැත්ත උනොත්...?
Sri Lanka makes second forced bond sale, yields up EmptyFri May 24, 2019 3:42 pm by smallville

» Sri Lanka at Cross Roads: Time to Learn, Unlearn and Relearn - Prof Rohan Gunaratna
Sri Lanka makes second forced bond sale, yields up EmptyFri May 24, 2019 3:10 pm by puliyanam

» Songs to listen
Sri Lanka makes second forced bond sale, yields up EmptyFri May 24, 2019 11:26 am by yellow knife

» Dhammika Perera non-committal on common candidate speculation
Sri Lanka makes second forced bond sale, yields up EmptyThu May 23, 2019 2:54 pm by කිත්සිරි ද සිල්වා

» Films - To Watch List
Sri Lanka makes second forced bond sale, yields up EmptyWed May 22, 2019 10:04 am by කිත්සිරි ද සිල්වා

» Japan, India in Deal at ‘Belt And Road’ Colombo Port: Nikkei
Sri Lanka makes second forced bond sale, yields up EmptyTue May 21, 2019 2:06 pm by Ethical Trader

» Presidential poll between 15 Nov-7 Dec
Sri Lanka makes second forced bond sale, yields up EmptyTue May 21, 2019 11:31 am by bjmd

» Flying is the Safest mode of Transport
Sri Lanka makes second forced bond sale, yields up EmptyTue May 21, 2019 7:07 am by කිත්සිරි ද සිල්වා

» My Port Folio Bleeding But Its just the Begining Of..
Sri Lanka makes second forced bond sale, yields up EmptySat May 18, 2019 7:40 pm by serene

» Sri Lanka mulls 25-pct ownership limit in finance companies
Sri Lanka makes second forced bond sale, yields up EmptyFri May 17, 2019 3:40 pm by Backstage

» Searing Heat in China Is Causing Havoc for Rubber Makers
Sri Lanka makes second forced bond sale, yields up EmptyFri May 17, 2019 2:43 pm by Backstage

» Israeli spyware breached WhatsApp security
Sri Lanka makes second forced bond sale, yields up EmptyWed May 15, 2019 7:47 am by කිත්සිරි ද සිල්වා

» Is Burka prohibted ?
Sri Lanka makes second forced bond sale, yields up EmptyWed May 15, 2019 7:30 am by කිත්සිරි ද සිල්වා

» Thread for General News Local/Foreign
Sri Lanka makes second forced bond sale, yields up EmptyTue May 14, 2019 11:49 am by CK

» Fed Rate hike , Rs Devaluation PART 2 : Should CSE be like this? Whose FAULT is it?
Sri Lanka makes second forced bond sale, yields up EmptyFri May 10, 2019 7:15 pm by Backstage

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Sri Lanka makes second forced bond sale, yields up

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Sri Lanka makes second forced bond sale, yields up Empty Sri Lanka makes second forced bond sale, yields up

Post by The Invisible on Sat Oct 13, 2018 8:31 am

ECONOMYNEXT - Sri Lanka has made the second coercive bond sale with gilt dealers being forced to 5-year bonds based on a cut-off decided by the authorities during a 40 billion rupee bond sale.

Sri Lanka has sold 20 billion rupees of bond maturing on 15 July 2023 at an average yield of 11.69 percent of which about 4.0 billion rupees were estimated to have been forced on buyers at the weighted average yield.

The bond was quoted in the secondary market at yields around 11.85/95 percent generating losses for holders. The cut-off is estimated to have been around 12.04 percent, market sources said.

A 15 October 2021 bond forced on buyers at 10.03 percent at the last auction is now trading around 11.50/75 percent with holders now in losses.

An offer of 20-billion rupees of 14-year 3-month bond maturing on 15 January 2033 was fully take up at a weighted average yield of 11.90 percent. It was quoted around 11.70/95 percent. The cut-off is estimated to be around 11.98 percent.

The longer term yield curve is flat in the belief that interest rate spike is temporary with some insurance firms in particular willing to buy the bonds.

Sri Lanka's interest rates have been rising amid a liquidity shortage generated by a maturing central bank swap and interventions made after the exchange rate came under pressure from excess liquidity and low rates.

Critics say the coercive bond sales are a point of vulnerability both to the financial system and the economy in general, especially when the exchange rate is under pressure.

Rates could come down after credibility returns to the exchange rate peg, market analysts say. (Colombo/Oct12/2018)
The Invisible
The Invisible

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