ECONOMYNEXT – Sri Lanka’s Treasury bill yields rose across maturities at Wednesday’s auction with the 3-month bill rising 45 basis points to 8.16 percent, data from the state debt office said.
The debt office sold 31.9 billion rupees of 3-month bills after offering 13.5 billion rupees.
1.43 billion rupees of 6-month bills were sold at 8.33 percent, up 23 basis points after offering 20 billion rupees.
205 million rupees of 12-month bills were sold at 8.24 percent, up 22 basis points.
A total of 33.5 billion rupees of bills were sold after offering 48.5 billion rupees.
The central bank has over 1.9 trillion rupees of Treasury securities bought to generate balance of payments deficit over 5.0 billion US dollars and over 11 percent inflation and part of the maturing volume could be owned by the monetary authority.
The central bank has generally not acquired bills from auctions over the past two months but its Treaury bill stock had grown mostly due to sterilized interventions or injecting rupees to monetary markets after injecting dollars to forex markets, to stop interest rates from going up. (Colombo/Dec28/2021)