Sri Lanka Treasuries yields up

Oct 19, 2011 (LBO) – Sri Lanka’s Treasuries yields moved up across maturities at Wednesday’s auction with only 6.8 billion rupees of bids being accepted from the market following an offer to sell 12.0 billion rupees in bills. Sri Lanka’s interest rates have been moving up amid defence of a dollar peg and strong domestic credit growth.

The 3-month yield rose 03 basis points to 7.24 percent, the 6-month yield rose 02 basis points to 7.29 percent and the 12 month yield rose to 7.36 percent, data from the state debt office, which is a unit of the central bank showed.

The state sold 3.0 billion rupees of 3-month bills, 1.85 billion rupees in 6-month bills and 1.9 billion rupees in 12-month bills.

About 21.7 billion rupees of bills were due to mature this week.