Sri Lanka Treasuries short tenure bids rejected

July 24, 2013 (LBO) – Sri Lanka’s state debt office has rejected offers for three and 6 month bills at Wednesday’s auction accepting only tenders only for 12 month bills. Sri Lanka’s rupee has fallen around four rupees in recent weeks under pressure from excess rupee liquidity and a policy of the monetary authority not to intervene (unsterilized interventions) under a so-called ‘flexible exchange rate’ stance.

After offering 12.0 billion rupees of maturing bills for roll-over the debt office said 9.2 billion rupees of bids, all for 12-month tenor were accepted at a average yield of 10.56 percent, down 03 basis points from a week earlier.

Meanwhile in forex markets the spot US dollar was quoted at 131.55.65 rupees but trading was taking place on spot-next, where settlement is made four days later, dealers said.

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