Sri Lanka sells 12-month bills, rejects bids for shorter tenors

ECONOMYNEXT – Sri Lanka’s has rejected bids for 3 and 6 month bills and sold 10.1 billion rupees of Treasury bills at Wednesday’s auction, data from the state debt office showed.

The 12-month yield went up marginally by 02 basis points to 9.39 percent.

Sri Lanka’s central bank has a habit of rejecting bills and printing money to worsen currency pressure.

Analysts have also warned the central bank not to buy dollars from the Treasury and create new money, which is another trick used in the past to worsen currency pressure and stop a float from taking hold. (Colombo/June26/2018)

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