The Central Bank bought Rs. 4.4 bn worth treasury bills on Wednesday by driving rates down marginally.
The bank said the money was needed to improve market liquidity, which fell below Rs. 2 bn in this week.rn
rnThe money market had a Rs. 4 bn surplus last week, likely on money withdrawals ahead of the April 2 polls and the Sinhala Tamil New Year holidays.rn
rnCentral Bank says the rates would have fallen even if the market snapped up the entire issue.rn
rnAround Rs. 7,417 mn worth of bills matured this week, though the bank issued only Rs. 5,917 mn worth of paper. The auction was oversubscribed with the bank receiving Rs. 14,323 mn in bids.rn
rnThe weighted average yields for three months paper fell six basis points to 7.63 percent, six-months paper by two basis points to 7.64 percent and one year bills fell three basis points to 7.66 percent.rn
-LBO Newsdesk: LBOEmail@vanguardlanka.comrn