Sri Lanka fails to sell 14-pct of Treasuries at auction

ECONOMYNEXT – Sri Lanka has failed to sell 14 percent of Treasuries offered at an auction on December 02, 2020 with 34.3 billion rupees out of 40 billion rupees of bills offered being sold, data from the state debt office showed.

Ceiling rates of 4.65 percent, 4.76 percent and 5.0 percent were announced before the auction, in a yield curve targeting exercise where any unsold bills have been bought by the central bank with printed money.

After offering 22 billion rupees of 12-month bills 13.29 billion rupees were sold at 5.0 percent, unchanged from last year.

After offering 12.5 billion rupees of 6-month bills, 13.2 billion rupees were sold at 4.76 percent.

After offering 5.5 billion rupees of 3-month bills, 7.75 billion rupees of bills were sold at 4.65 percent, from 4.64 percent last week.

Sri Lanka has been printing unprecedented volumes of money to finance a budget deficit. Central Bank Governor W D Lakshman had said that the agency was using modern monetary authority. (Colombo/Dec02/2020)

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