HALISTER1: Buy Sri Lankan 10-Year Bonds as Inflation Peaks: StanChart

Buy Sri Lankan 10-Year Bonds as Inflation Peaks: StanChart

(Bloomberg) -- Current valuations for Sri Lankan rupee-Treasury bonds are attractive and offer favorable risk-reward, Standard Chartered analysts led by Nagaraj Kulkarni write in note
  • Govt is making progress in line with IMF recommendations, albeit at a slower pace
    • Private-sector credit growth is declining and inflation is likely to have peaked
    • As a result, expects domestic investor demand for T- bonds to pick up
    • Recommends buying 10-year Treasury bonds at a yield of 11.85% with a target of 10.50% and stop-loss at 12.70%

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Nagaraj Kulkarni (Standard Chartered PLC)

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Emerging Mkts News, Analysis

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