Sri Lanka Treasuries yields up; rupee steadier

Feb 14, 2012 (LBO) – Sri Lanka’s Treasuries yields rose edged up 07 to 18 basis points at Wednesday’s auction and the rupee recovered from record lows in the spot dollar market helped by forex sales by state banks. The debt office, which is a unit of the Central Bank said 3-month yields rose 07 basis points to 9.31 percent, the 6-month yield rose 18 basis points to 9.44 percent and the 12-month yield rose 11 basis points to 9.99 percent.

In forex markets the rupee opened at 120.10/40 against the US dollar and traded as low as 120 before recovering to close at 119.40/55 dealers said.

A state bank was seen selling dollars.

The Central Bank said the rupee had overshot its value.

It would continue to follow a path of limiting interventions and providing reserves to pay only a part of the oil imports.

corrected 119.40/55