Sri Lanka Treasury bill yields frozen, bids rejected

Apr 03, 2013 (LBO) – Sri Lanka’s three and six months Treasury bill yields were frozen Wednesday with market bids rejected, data from the state debt office showed. The 3-month yield was kept at 9.26 percent, 6-month bids rejected and the 12-month yield was also flat at 11.35 percent.

The debt office which is a unit of the Central Bank offered 12.0 billion rupees of maturing bills at the auction and accepted only 8.8 billion rupees.

Sri Lanka prints tens of billions of rupees in April to pay festival advances to state workers amid seasonal cash draw downs from the banking system ahead of a traditional new year.

This year however there is over 30 billion rupees of excess liquidity in money markets.