Sri Lanka Treasuries yields rise

Mar 21, 2012 (LBO) – Yields on most Sri Lankan Treasury Bills rose at Wednesday’s auction for the roll-over of 10 billion rupees of debt, the state debt office which is part of the central bank said. Sri Lanka’s market rates have to move up according to state credit demand to help stabilize the exchange rate and curb demand. The yield on 03-month bills rose 33 basis points to 10.75 percent and the yield on 12-month bills rose 35 basis points to 11.11 percent.

The debt office said it sold 7.1 billion rupees of 03-month bills and a billion rupees of 12-month bills with none accepted for 06-month bills on which the last rate was 10.46 percent.

The weekly primary auction was oversubscribed with bids amounting to 18,664 million rupees being received, the debt office said. It accepted bids of 8,128 million rupees from the auction.