Sri Lanka treasuries yields up

Dec 05, 2007 (LBO) - Yields on Sri Lanka government treasury bills rose sharply on Wednesday with the benchmark 3-month bills gaining 96 basis points to 18.
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03 percent, the government's debt office said.
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One year yields rose 89 basis points to 19.96 percent and six months bills gained 94 basis points to 18.79 percent at the auction.

The government offered 13.8 billion rupees worth treasury bills but accepted 10.8 billion from the market and retired the balance at today's auction.

In forex markets the rupee gained against the US dollar to trade around 109.60/70 rupees to the greenback, dealers said.

Sri Lanka's interest rates have been rising in the last few weeks as the Central Bank tightened monetary policy in the wake of record inflation which is already at 19.

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6 percent in Colombo.

The monetary authority printed 45.2 billion rupees to bridge the fiscal deficit from May September 2007, increasing demand pressure and pushing inflation up.

The IMF in a report this week called for higher interest rates and less money printing to bring inflation down.

In the stock market, the All Share index closed four points lower at 2513.61 points.

The Milanka index closed up three points at 3312.30.

Turnover was 127 million rupees.

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Corrected-3-month yield

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