ECONOMYNEXT - Sri Lanka's Treasury bill yields edged up at Wednesday's auction with the 12-month yield rising 06 basis points to 6.92 percent, data from the state debt office showed.
The 3-month yield rose 04 basis point to 6.10 percent and the 6-month yield rose 05 basis points to 6.35 percent.
The debt office sold 7.9 billion rupees of 3-month bills, 7.8 billion rupees of 6-month bills and 8.9 billion rupees of 12-month bills totalling 24.8 billion rupees.
There is an estimated 25.5 billion rupees of bills maturing on Friday.
The data seemed to indicate that no significant amounts of fresh money was printed to repay maturing bills unlike in the recent past.
Over the last six months, the Central Bank printed money to repay bills, undermining a Treasuries auction process started in the mid-1990s by then Governor A S Jayewardene.
The new money fired credit and import demand to unsustainable heights and generally de-stabilized the credit system and busted the exchange rate.
Over the last two weeks the central bank had mopped up some of the excess liquidity from money markets through open market operations. Analysts say it is not clear whether Sri Lanka is getting back to prudent monetary policy or whether recent monetary tightening operations are a temporary aberrations from the loose path.
Bond yeilds also rose after the auction.
The 3-month yield rose 04 basis point to 6.10 percent and the 6-month yield rose 05 basis points to 6.35 percent.
The debt office sold 7.9 billion rupees of 3-month bills, 7.8 billion rupees of 6-month bills and 8.9 billion rupees of 12-month bills totalling 24.8 billion rupees.
There is an estimated 25.5 billion rupees of bills maturing on Friday.
The data seemed to indicate that no significant amounts of fresh money was printed to repay maturing bills unlike in the recent past.
Over the last six months, the Central Bank printed money to repay bills, undermining a Treasuries auction process started in the mid-1990s by then Governor A S Jayewardene.
The new money fired credit and import demand to unsustainable heights and generally de-stabilized the credit system and busted the exchange rate.
Over the last two weeks the central bank had mopped up some of the excess liquidity from money markets through open market operations. Analysts say it is not clear whether Sri Lanka is getting back to prudent monetary policy or whether recent monetary tightening operations are a temporary aberrations from the loose path.
Bond yeilds also rose after the auction.
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