Sri Lanka rejects bids for six and 12-month bills

Dec 12, 2007 (LBO) – Sri Lanka has rejected bids for 6 and 12-month Treasury bills at Wednesday’s auction selling only 3-month bills at an average yield of 18.99 percent, up 96 basis points from last week. .Updated/Corrected last week

Dealers estimate the 3-month cut – off rate, the highest rate at which bids were accepted, to be around 19.75 percent.

Last week 12-month bills rose 89 basis points to 19.96 percent. Six months bills averaged 19.73 percent.

In the secondary market 12-month bills were trading around 20.00 percent this week.

The government offered 13.3 billion rupees of bills to the market but only sold 6.2 billion worth of 6-month bills, retiring the balance, the debt office said.