ECONOMYNEXT - Sri Lanka's Treasuries yields were flat at Wednesday's auction with Rs13.39 billion of bills sold, data from the state debt office showed, against an estimated Rs31.6 billion of maturing bills.
The three-month yield edged up 2 basis points to 8.82 percent with Rs1.6 billion of bills sold and the six-month yield rose 01 basis point to 9.76 percent with Rs9.6 billion of bills sold.
The 12-month yield also rose 1 basis point to 10.53 percent with Rs2.0 billion of bills sold.
This week an estimated Rs31.6 billion of bills are maturing.
It is not clear whether the balance bills were already held by the Central Bank. If the bills are already held by the Central Bank, rolling over them will not add new rupee reserves to the banking system and drive credit and imports up.
Over the past year, the Central Bank printed over Rs200 billion to generate a balance of payments crisis and bust the currency. Its bill holding was Rs448 billion as of this week.
Last week, after 'squaring up' day, the Central Bank's bill holding rose to Rs248 billion on June 1, from Rs222 billion as banks borrowed from its overnight window.
Market participants have borrowed Rs21.6 billion from the overnight printed money window, but plus liquidity banks have deposited Rs35.7 billion in the excess liquidity window as of yesterday.
The Central Bank in the past has generated balance of payments trouble by permanently accommodating liquidity shortages by bill purchases at the auction.
The three-month yield edged up 2 basis points to 8.82 percent with Rs1.6 billion of bills sold and the six-month yield rose 01 basis point to 9.76 percent with Rs9.6 billion of bills sold.
The 12-month yield also rose 1 basis point to 10.53 percent with Rs2.0 billion of bills sold.
This week an estimated Rs31.6 billion of bills are maturing.
It is not clear whether the balance bills were already held by the Central Bank. If the bills are already held by the Central Bank, rolling over them will not add new rupee reserves to the banking system and drive credit and imports up.
Over the past year, the Central Bank printed over Rs200 billion to generate a balance of payments crisis and bust the currency. Its bill holding was Rs448 billion as of this week.
Last week, after 'squaring up' day, the Central Bank's bill holding rose to Rs248 billion on June 1, from Rs222 billion as banks borrowed from its overnight window.
Market participants have borrowed Rs21.6 billion from the overnight printed money window, but plus liquidity banks have deposited Rs35.7 billion in the excess liquidity window as of yesterday.
The Central Bank in the past has generated balance of payments trouble by permanently accommodating liquidity shortages by bill purchases at the auction.
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