Sri Lanka Treasuries yields rise again

Apr 18, 2012 (LBO) – Sri Lanka’s Treasury bill yields rose again across maturities at Wednesday’s auction following an increase of more than 50 basis points last week, data from the debt office showed. The auction was oversubscribed with bids amounting to 22,776 million rupees being received. The 3-month yield rose 11 basis points to 11.73 percent, the 6-month yield rose 20 basis points to 11.85 percent and the 12-month yield rose 27 basis points to 11.96 percent, the debt office, which is a unit of the Central Bank said.

The previous week, the Central Bank had hiked policy rates by 75 basis points to contain credit growth.

The central bank said it accepted 12,375 million rupees of bids from the market, after offering to roll over 10 billion rupees.