Halister News

(Bloomberg) -- HSBC revises target for 10-year Sri Lanka govt bonds to 9% from 10% and maintains its recommendation to stay long, strategists Andre de Silva and Himanshu Malik write in note Thursday.

• Co. has turned more bullish on Sri Lankan local rates with inflation for rest of 2017 likely to remain within targets prescribed by IMF
• Govt’s continued efforts toward fiscal consolidation help central bank in its transition toward an inflation targeting regime
• Central bank may pivot toward an easing cycle in early 2018 if credit growth moderates to around 15%, a level viewed as neutral level by both central bank and IMF
• Recommends holding June 2027 govt bonds to target yield at 9%
• NOTE: Yield was 10.7% at the last trade on Monday

To contact the reporter on this story: Liau Y-Sing in Kuala Lumpur at yliau@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Masaki Kondo