Apr 10, 2013 (LBO) – Sri Lanka’s Treasuries yield were steady at this week’s auction with the three month yield easing one basis point to 9.25 percent and the 12-month yield flat at 11.35 percent, the state debt office said. The 6-month yield for which bids were rejected a week earlier was 10.25 percent.
The debt office said 1.0 billion rupees of 3-month bills, one billion rupees of 6 month bills and 6.0 billion rupees of 12 month bills were sold, after offering 9.0 billion in bills at the auction.
In April due to seasonal cash demand there is an outflow of cash from the banking system and the central bank also prints money for the government to pay festival advances to state workers.
This year the banking system has 41 billion rupees in excess liquidity, largely from dollar inflows purchased by the Central Bank.
In the spot market, the rupee was traded at around 125.50/55 to the US dollar dealer said.