Oct 25, 2011 (LBO) – Yields on Sri Lankan treasury bills rose across maturities for the second straight week with only 5.7 billion rupees of bids being accepted from the market after an offer to sell 12 billion rupees in maturing bills. The 03-month yield rose 05 basis points to 7.29 percent, the 6-month yield rose 06 basis points to 7.35 percent and the 12-month yield rose 08 basis points to 7.44 percent, data from the state debt office, which is a unit of the central bank showed.
The state sold 2.0 billion rupees of 3-month bills, 1.65 billion rupees in 6-month bills and 2.0 billion rupees in 12-month bills.
The weekly auction, held Tuesday as Wednesday is a bank holiday, was oversubscribed with bids amounting to 15.3 billion rupees being received.
Sri Lanka’s interest rates have been moving up amid defence of a dollar peg and strong domestic credit growth.