Sri Lanka Treasuries flat

Mar 16, 2011 (LBO) – Sri Lanka’s Treasuries yields were flat with only a part of a 9.0 billion stock of maturing bills being sold to real buyers at Wednesday’s auction, the government’s debt office said. Sri Lanka’s inflation rose to 7.8 percent in February and markets have become jittery with two way quotes widening in bond markets and liquidity drying up, dealers said.

The 3-month yield remained at 6.97 percent, the 6-month 7.06 percent, and the 12-month at 7.33 percent.

The government sold 2.0 billion rupees in 3-month bills, 3.0 billion in 6-month bills and 3.8 billion rupees in 12-month bills.

The debt office, which is a unit of the Central Bank said out of 9.0 billion rupees in bills offered for sale only 8.9 billion rupees were accepted from the market, a phrase which usually indicates the remaining amount was repaid with printed money.