Sri Lanka Treasuries yields steady

June 01, 2011 (LBO) – Sri Lanka’s Treasury bill yields were steady at Wednesday’s auction the government’s debt office said, with only a part of maturing bills being sold to real buyers. The 3-month yield moved up 01 basis point to 7.10 percent, the 6-month yield also moved up a basis point to 7.20 percent and the 12-month yield was flat at 7.35 percent.

The debt office, which is a unit of the Central Bank said out of 10 billion rupees of maturing bills only 9.3 billion rupees of bids were accepted from real buyers.

The term is usually used to indicate that the Central bank has bought the bills with printed money to avoid default. Sri Lanka’s inflation rose 8.8 percent in May from a year earlier. At the shorter end treasuries have had a negative real yield for several months.