Sri Lanka Treasuries yields up

Image courtesy of Sanjeewa Dayarathne (www.Feedback.lk)

Sept 21, 2011 (LBO) – Sri Lanka’s Treasury bill yields edged up across maturities and Wednesday’s auction, with the 3-month yield up 3 basis points to 7.14 percent, data from the state debt office showed. On Wednesday authorities weakened the peg 10 cents to 110.20 rupees in the spot market.

The 6-month yield rose 02 basis points to 7.22 percent and the 12-month yield rose 04 basis points to 7.30 percent.

At an open market auction earlier in the day the Central Bank took in 27.1 billion rupees in excess cash from banks at 7.08 percent, the same rate as a day earlier.

Excess liquidity in Sri Lanka’s banking system have dried up amid a defence of a dollar peg by the monetary authority.