Sri Lanka Treasuries yields up

June 20, 2012 (LBO) – Sri Lanka’s Treasuries yields rose across maturities with 6-month bill picking up the most at Wednesday’s auction, data released by the state debt office showed. The 3-month yield rose 09 basis points to 11.04 percent, the 6-month yield rose 18 basis points to 12.47 percent and the 12-month yield rose 11 basis points to 12.87 percent.

The debt office which is a unit of the Central Bank sold said 3.0 billion rupees of 3-month bills, 9.2 billion of 6 month bills and 3.9 billion rupees of 12 month bills were sold to raise 16.2 billion rupees from the auction.

Allowing Treasuries rate to float according to credit demand, without central purchasing them with printed money is key to strengthening Sri Lanka’s currency, keeping inflation low.

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