Sri Lanka’s Treasuries yields flat

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

June 19, 2013 (LBO) – Sri Lanka’s Treasuries yields were kept flat at Wednesday’s auction with 10.75 billion rupees in bid accepted after offering 12.0 billion for rollover, data from the state debt office showed. The spot US dollar was trading at 128.50/55 in afternoon trade Wednesday, dealers said around the same levels at Tuesday’s closing

The 3-month yield eased 01 basis point to 8.66 percent, the 6-month yield was flat at 9.80 percent and the 12-month yield was flat at 10.85 percent.

The debt office said 1.5 billion rupees in 3-month bills, 2.0 billion in 6-month bills and 10.85 percent in 12-month bills were sold.

Excess liquidity in money markets and the Central Bank’s Treasury bill stock has edged up a little over the past week, with medium term rates also going slightly higher from two weeks ago.

On Wednesday a widely traded 5-year bond was quoted at 11.24/27 percent, though easing from yesterday 11.30 percent levels, dealers said.

Five year bonds have moved up about 15 to 20 basis points over the last two weeks with some foreign holders looking to sell small volumes, dealers said, with some buying into shorter tenors, dealers said.

Central Bank Governor Nivard Cabraal has said there were no unusual exits from bonds, though there have been sell-offs in other emerging Asian markets.