Sri Lanka Treasuries yield drop 20bp
ECONOMYNEXT – Sri Lanka’s 12-month Treasuries yield dropped 20 basis points from a week earlier to 9.71 percent at Tuesday’s auction, data from the state debt office showed.
The debt office accepted 28 billion rupees in bids from the market, after offering only 16 billion rupees of bills.
No bids were accepted after offering 5 billion rupees of 3-month bills and 7.0 billion in 6-momth bills.
Before the auction one year bills were quoted around 9.53/60 percent. After the auction 12-month paper was quoted around 9.60/70 percent, dealers said.
Sri Lanka’s bill and bond yields rose amid political uncertainty from February and short term rates spiked in last week of March amid a tax change and seasonal demand for cash.
The central bank cut the ceiling policy rate by 25 basis points on April 04 to 8.50 percent and has printed money below the rate though overnight auctions to keep rates down.