Sri Lanka Treasuries yields down amid BOP pressure
Nov 19, 2018 17:36 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's 12-month Treasury bill yield fell 04 basis points to 11.21 percent at an auction Monday, data from the state debt office showed, amid balance of payments pressure and a liquidity release.
The 3-month yield also fell 06 basis points to 10.01 percent.
The debt office offered 3.0 billion rupees of 3-month bills and accepted 4.5 billion rupees of bills. After offering 9.0 billion rupees of 12-month bills, 11 billion rupees of bills were accepted.
Bids for 3.5 billion rupees of 6-month bills were rejected.
On Friday the central bank released an estimated 90 billion rupees of new liquidity to the interbank market through a reserve ratio cut, which give banks free money to buy bonds, bills and give new credit and push up imports and worsen pressure on the currency, critics say.
In addition to policy errors, Sri Lanka has now been hit by a political crisis. (Colombo/Nov19/2018)