Sri Lanka treasury yields continue to move up

L to R: Samantha Ranatunga, Chairman, HVA Foods PLC; Jan Müggenburg, Chief Executive Officer, Müggenburg Group; Graham Stork, Chief Executive Officer, HVA Foods PLC; Sarva Ameresekere, Group Chairman, George Steuart & Co. Ltd.

April 25, 2007 (LBO) - Sri Lanka Treasury bill yields edged up by an average 33 basis points to 15.84 Wednesday, while the 3-month cut-off yield topped 16.70 percent, dealers said. In April reserve money rose to 277 billion partly due to seasonal factors which the bank has to bring down as the money comes back into the system.

Updated The weighted average 3-month today's auction moved up 17 basis points to 16.01 percent, the government's public debt office said.

The weighted average 12-month rate moved up 18 basis points to 15.69 percent but the cut off was higher with bids being accepted around 16.00 percent.

At this week’s auction 14.8 billion rupees of maturing treasury bills were offered to the market and 8.7 billion market bids were accepted.

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The Central Bank bought 5.5 billion rupees worth of bills.

The interbank market is liquid with the Central Bank mopping up 16 billion rupees through an overnight repo auction at 11.8 percent.

The spot dollar was trading around 110.


05 rupees near close of trading.

The Central Bank has an ambitious reserve money target of 250.4 billion rupees for June to bring down inflation which rocketed up to 20.5 percent last January due to excessive financing of the budget deficit by the central bank.

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