Sri Lanka Treasuries edge lower, rupee weaker

Sri Lanka's Prime Minister Ranil Wickremesinghe arrives with flowers to receive blessings at the Gangaramaya Buddhist Temple, Colombo, Sri Lanka on Wednesday 4 April 2018. On wednesday (4), Wickremesinghe survived a no-confidence motion in the Sri Lankan parliament with a 46 vote majority after a 12-hour debate with 122 MPs voted in his support while 76 MPs voting to remove the prime minister. (Photo by Tharaka Basnayaka/NurPhoto via Getty Images)

Feb 25, 2014 (LBO) – Sri Lanka’s Treasures yields edged marginally down at Tuesday’s auction with the 3-month yield down 03 basis points to 6.72 percent, data from the state debt office showed. The 6-month yield fell 01 basis point to 6.89 percent and the 12-month yield fell 01 basis point to 7.07 percent.

The debt office said one billion rupees in three month bills, 8.7 billion rupees in 6-month bills and 12.9 billion rupees in 12-month bills totally 22.6 billion rupees were sold.

In forex markets the rupee weakened below 131.00 to the US dollar in the spot market and was quoted around 131.05/10 in afternoon trade.

There is excess liquidity in money markets, requiring the rupee to be defended with unsterilized dollar sales which will mop up liquidity and not cause any additional pressure.

There had also been some selling in the stock market by foreign investors adding to any pressure coming from excess rupee liquidity, coupled with some exporter conversion delays, dealers said.