Sri Lankan bill yields move up

Dec 16, 2009 (LBO) - Sri Lankan Treasury bill yields edged up across maturities, at Wednesday's auction, the government's debt office said, despite only a part of the bids being accepted. The 3-month yield rose 09 basis points to 7.60 percent, the 6-month yield rose 09 basis points to 8.

59 percent and the 12-month yield rose 06 basis points to 9.32 percent.

The central bank said out of 7.

0 billion rupees of maturing debt, only 5.

4 billion rupees was accepted from the market.

The stock of treasury bills held by the Central Bank has now climbed to 24.0 billion rupees, and excess liquidity is high.

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Fiscal discipline has weakened ahead of presidential poll in January and in November inflation moved up to 2.8 percent from 1.4 percent a month earlier.

But credit growth is still weak.