May 24, 2010 (LBO) – Sri Lanka’s 3-month Treasury bill yields dipped 03 basis points to 8.10 percent at Monday’s auction, the government’s debt office said. The central bank routinely prints money to bridge government recurrent expenditures, driving up inflation.
The 6-month yield rose 03 basis points to 8.91 percent while the 12-month yield was at 9.26 percent, up 03 basis points.
The auction was held two days ahead due to forthcoming Holidays.
The government’s debt office said it sold 1.711 billion rupees of 3-month bills, 2.674 billion rupees of 6-month bills and 2.061 billion rupees of 12-month bills.
The debt office, which is a unit of the Central Bank said, it had accepted only 6.446 billion rupees in ‘real bids’ from the market to roll over 13 billion rupees in maturing Treasuries on Monday’s auction.
The auction received 18.350 billion rupees worth of offers from the market.