ECONOMYNEXT - Sri Lanka's Treasuries yields dropped across maturities at Wednesday's auction with the 12-month yield dropped 10 basis points to 6.61 percent, data from the state debt office showed.
The 6-month month yield dropped 04 basis points to 6.99 percent and the 12-month yield dropped 04 basis points to 7.06 percent.
The debt office accepted 3.0 billion rupees of 3-month bills, 17.4 billion rupees of 6-month only 2.6 billion rupees of 12-month bills, totalling 23.0 billion rupees.
There is an estimated 35 billion rupees of bills maturing this Friday, indicating that either the Central Bank will print money to buy the bills or some of it is in its own portfolio.
Intervening in interest rates beyond the overnight policy rates in times of strong credit growth is part of a repertoire of tools used by Sri Lanka's soft-pegged central bank to precipitate balance of payments crisis, critics who are calling for fundamental reforms of the monetary authority say.
On October 28, Sri Lanka sold a 1.5 billion US dollar sovereign bond.
The 6-month month yield dropped 04 basis points to 6.99 percent and the 12-month yield dropped 04 basis points to 7.06 percent.
The debt office accepted 3.0 billion rupees of 3-month bills, 17.4 billion rupees of 6-month only 2.6 billion rupees of 12-month bills, totalling 23.0 billion rupees.
There is an estimated 35 billion rupees of bills maturing this Friday, indicating that either the Central Bank will print money to buy the bills or some of it is in its own portfolio.
Intervening in interest rates beyond the overnight policy rates in times of strong credit growth is part of a repertoire of tools used by Sri Lanka's soft-pegged central bank to precipitate balance of payments crisis, critics who are calling for fundamental reforms of the monetary authority say.
On October 28, Sri Lanka sold a 1.5 billion US dollar sovereign bond.
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