Sri Lanka Treasuries yields up, bonds lower

Feb 29, 2012 (LBO) – Sri Lanka’s Treasuries yields rose across maturities at Wednesday’s auction though bond yields were pushed down by state managed fund, ahead of a 51 billion rupee rollover due on Thursday, dealers said. The state debt office said the 3-month yield rising 30 basis points to 9.81 percent, the 6-month yield rose 30 basis points to 9.94 percent and the 12-month yield rose 11 basis point to 10.30 percent, at Wednesday’s auction.

The debt office, which is a unit of the Central Bank said it sold 869 million rupees of 3-month bills, 733 million rupees of 6-month bills and 677 million rupees of 12-month bills.

The Central Bank said only 2.2 billion rupees in bills were sold to market bidders though 10 billion rupees were originally offered.

On Thursday a 51.5 billion rupee tranche of bonds issued in 2009 are maturing.

Earlier on Wednesday, the Employees Provident Fund, a central bank managed fund of private sector workers’ retirement money, was buying bonds in the market, dealers said.

A 2015 bond which was quoted to yield around 11.80/90 percent was pushed down to 11.60/70 levels, dealers said.

A 2014 bond which was quoted around 11.20/30 percent was pushed down to 11.00 percent sharp but was later quoted around 11.15 percent levels, dealers said.

Update II