Sri Lanka’s Treasury bill yields marginally down

ECONOMYNEXT – Sri Lanka’s 12-month Treasury bill yield was flat at 9.0 percent at Wednesday’s auction with 12 billion rupees of bills offered and 12 billion sold, data from the state debt office showed, despite excess liquidity continuing to tighten.

The 6-month yield fell 02 basis points to 8.60 percent, with 2 billion rupees of bills offered and 2 billion rupees of bills sold.

The 3-month yield fell 01 basis point to 8.09 percent, with 4.0 billion rupees of bills offered and 4.0 billion sold.
The auction was is unusually efficient with no misleading of the market, by offering one quantity and accepting another. 

In the overnight repo market excess liquidity has continued to drop, though rates have also dropped.

On August 21, excess liquidity dropped to 29.64 billion rupees from 33.5 billion rupees. The weighted average overnight yield fell to 7.77 percent from 7.80 a day earlier.

To avert any pressure on the currency, the overnight rate has to move up. (Colombo/Aug21/2018)

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