Sri Lanka Treasuries yields flat

Feb 27, 2013 (LBO) – Sri Lanka’s Treasuries yields were flat at Wednesday’s auction with the 3-months with 18.7 billion rupees in bids being accepted from the market after 15.0 billion rupees of maturing bills being offered, the state debt office said. The 3-month yield eased 01 basis point to 9.09 percent, the 6-month yield was unchanged at 10.08 percent and the 12-month yield was also flat at 11.10 percent.

Five year gilts maturing on 01.04.2018 were quoted in the market at around 11.15/20 percent, up from yesterday’s 11.10/15 levels dealers said.

Sri Lanka’s risk free yield curve was inverted a few months back.

Meanwhile bank deposit rates remains high, with some state banks paying as much as 17 percent for one year bills.

December credit data showed heavy borrowings by the state from banks, crowding out private borrowers.