Sri Lanka Treasuries yields up

Mar 14, 2012 (LBO) - Sri Lanka's Treasuries yields increased across maturities at Wednesday's auction with the 3-month yield rising 31 basis points to 10.



42 percent, the state debt office said. The 6-month yield increased 28 basis points to 10.





46 percent and the 12-month yield accelerated 31 basis points to 10.45 percent.

The debt office, which is a unit of the Central Bank said it sold 6.

08 billion rupees of 3-month bills, 1.1 billion rupees of 6-month bills and 1.



1 billion rupees of 12-month bills.

The debt office said it offered 10 billion in bills for sale and bids of 8.

29 billion rupees was accepted from the market.

Sri Lanka's market rates have to move up according to state credit demand to help stabilize the exchange rate and curb demand.

In January the state borrowed an unprecedented 73 billion rupees from bank.

Sri Lanka's central bank frequently triggers balance of payments crises and high inflation by intervening Treasury bill market via undisclosed 'quantity easing' actions with printed money to hold rates down.