Sri Lanka Treasuries move up

Dec 09, 2009 (LBO) – Sri Lanka’s three and six month Treasury bill yields moved up for the second week running, the government’s debt office said, as fiscal policy loosened ahead of elections and private sector credit started to expand. The 3-month yield moved up 11 basis points to 7.51 percent and the 6-month bills moved up to 08 basis points to 8.50 percent. The 12-month bills stayed at 9.26 percent.

The public debt department, which is a unit of the Central Bank, said 8.5 billion rupees of Treasury bills matured and 5.9 billion rupees were accepted from the market.

The bank did not say whether the balance was retired or rolled over with printed money.