Sri Lanka Treasuries flat

Mar 16, 2011 (LBO) - Sri Lanka's Treasuries yields were flat with only a part of a 9.0 billion stock of maturing bills being sold to real buyers at Wednesday's auction, the government's debt office said. Sri Lanka's inflation rose to 7.



8 percent in February and markets have become jittery with two way quotes widening in bond markets and liquidity drying up, dealers said.

The 3-month yield remained at 6.97 percent, the 6-month 7.06 percent, and the 12-month at 7.33 percent.

The government sold 2.0 billion rupees in 3-month bills, 3.

0 billion in 6-month bills and 3.8 billion rupees in 12-month bills.

The debt office, which is a unit of the Central Bank said out of 9.0 billion rupees in bills offered for sale only 8.

9 billion rupees were accepted from the market, a phrase which usually indicates the remaining amount was repaid with printed money.