Sri Lanka Treasuries yields up

Nov 30, 2011 (LBO) – Sri Lanka’s Treasuries yields rose across maturities with 12-month yields rising 49 basis points to 8.99 percent at Wednesday’s auction, data from the state debt office showed. The peg came under pressure as interest rates did not keep pace with credit growth earlier in the year.

The 3-month yield rose 25 basis points to 8.20 percent and the 6-month yield rose 32 points to 8.50 percent.

The state sold 4.7 billion rupees in 3-month bills, 1.8 billion rupees in 6-month bills and 3.0 billion rupees in 12-month bills.

Sri Lanka’s interest rates have been under pressure from defence of a dollar peg.