Flat Rates

Treasury bill yields remained flat on Wed. amidst speculation that that the Central Bank is unlikely to tinker with its short-term interest rates on Thu.
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The Central Bank has been following a soft rate stance amid reduced government borrowing following the February 2002 ceasefire.

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The bank has cancelled several government bond auctions lately and has also bought back treasury bills to inject liquidity into the system.rnrn

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On Monday, the bank cancelled a Rs. 3 bn two-year treasury bonds scheduled for Dec. 16, as it was ldblquote streamlining the borrowing program for December 2003.
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rnAtrnthis weeks T-bill auction, the bank bought back Rs. 1.15 bn of the Rs. 5.35 bnrnpaper on offer.rn

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Detailsrnof the auction are as follows:

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rn Maturity rn (Days) rn	rn Amount rn Offered rn (Rs.Mn.) rn	rn Bids rn Received rn (Rs.Mn.) rn	rn Amount rn Accepted rn (Rs.Mn.) rn	rn Weightedrn Average Yield rn Percentrn per annum rn Afterrn Tax rn
rn rn	rn rn	rn rn	rn rn	rn Thisrn Week rn	rn Lastrn Week rn
rn 3-months rn rn	rn 2,100 rn	rn 5,307	rn 1,615 rn	rn 7.34% rn	rn 7.34% rn
rn 6-months	rn 420 rn	rn 603 rn	rn 242 rn	rn 7.30% rn	rn 7.30 rn
rn 12-months	rn 1,680 rn	rn 1,574 rn	rn 343 rn	rn 7.22% rn	rn 7.22% rn
rn Total rn	rn 4,200 rn	rn 7,484 rn	rn 2,200 rn	rn 7.32% rn	rn 7.29% rn

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-LBO Newsdesk: LBOEmail@vanguardlanka.comrn

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