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Sri Lanka Treasuries drop at auction

COLOMBO (EconomyNext) – Sri Lanka’s Treasuries yield dropped across maturities at Wednesday’s, with the 12-month yield dropping 10 basis points to 6.50 percent, the state debt office said. The 3-month yield fell 7 basis points to 6.19 percent, and the 6-month yield fell 18 basis points to 6.35 percent. The debt office sold 9.85 billion rupees of 3-month bills, 10.9 billion rupees of 6-month bills and 13.73 billion rupees of 12 month bills. In the secondary market, bond yields also fell, dealers said. In money markets excess liquidity is now at a near record levels of 125 billion rupees, amid exchange rate pressure. Sri Lanka is now quite tightly pegged to the US dollar at 132.90 rupees level with no spot trading. Even one week forwards are now under moral suasion at 133.60/70 to the US dollar.