ECONOMYNEXT - Sri Lanka's Treasuries yields rose across maturities and the 12-month yield rose 50 basis points to 9.0 percent at Wednesday's auction, data from the state debt office showed.
The three month yield rose 54 basis points from February 17 to 8.49 percent and the 6-month yield rose 42 basis points from a week earlier to 8.49 percent.
The debt office sold 15.9 billion rupees of three month bills, 7.6 billion rupees of 6-month bills and 3.0 billion rupees of 12-month bills, totalling 26.6 billion rupees.
There was an estimated 26 billion rupees of maturing bills this week indicating that the debt office, which is a unit of the Central Bank had a successful auction after a series of failed auction where maturing bills were repaid with printed money.
Over the past year the debt office drove long term bond yields to high levels, accepting bids far above offered volumes but printed money at the short end to generate balance of payments pressure.
The central bank generates inflation, balance of payments crises and busts the currency mainly by purchasing Treasury bills with printed money.
The three month yield rose 54 basis points from February 17 to 8.49 percent and the 6-month yield rose 42 basis points from a week earlier to 8.49 percent.
The debt office sold 15.9 billion rupees of three month bills, 7.6 billion rupees of 6-month bills and 3.0 billion rupees of 12-month bills, totalling 26.6 billion rupees.
There was an estimated 26 billion rupees of maturing bills this week indicating that the debt office, which is a unit of the Central Bank had a successful auction after a series of failed auction where maturing bills were repaid with printed money.
Over the past year the debt office drove long term bond yields to high levels, accepting bids far above offered volumes but printed money at the short end to generate balance of payments pressure.
The central bank generates inflation, balance of payments crises and busts the currency mainly by purchasing Treasury bills with printed money.
No comments:
Post a Comment