Sri Lanka Treasuries yields edge up

ECONOMYNEXT – Sri Lanka’s 3 and 12 month Treauries yields edged up slightly and less than the total offered volume was sold at Tuesday’s auction, data from the state debt office showed.

The auction was held on Tuesday as Wednesday is a full moon Buddhist holiday.

The 3-month treasury bill yeild rose 05 basis points to 7.80 percent and the 12-month yield rose 06 basis points to 8.17 percent.

No bids were accepted for six month bills, despite offering 2.0 billion rupees and getting bids of 2.65 billion rupees.

Sri Lanka’s Treasuries yields fell steadily from Febraury 2019, after monetary instability returned and capital flight ended. Rates fell as priviate credit weakened, depsite goverment revenues falling.

The debt office offered 22 billion rupees in bills but accepted only 18.7 billion rupees of bills.
After offering 4 billion rupees in 3-month bills only 2.7 billion rupees of bids were accepted.
All 16 billion in 12-month bills were accepted.
The auction will be settled on August 16.
In a related development the domestic operations depart of the central bank has started to print money at close to the policy deposit rate and keep high levels of excess liquidity through (over-issue money).
Analysts have called for the domestic operations department to be restrained and some of its specific activities to be criminlnalized to maintain monetary stability and allow citizens to lead their lives without hardship. (Colombo/Aug13/2019)

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