Treasury Bill Auction - 25/03/2013

sriranga · 1 Treasury Bill Auction - 25/03/2013 Mon Mar 25, 2013 3:12 pm

sriranga

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http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130325ea.pdf

Treasury Bill Auction - 25/03/2013 Cbsl14

Redbulls

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Sri Lanka’s weekly Treasury bill auction held today, saw the one year rate climbing up by 9 basis points to stand at 11.35-pct from last week’s rate of 11.26%.

The three month tenor bills have moved up by just 4 basis points from the previous week’s rate to reach 9.26-pct.

The Bank did not give any details on the six month tenor treasury bills.

CBSL has accepted Rs. 8.83 billion out of Rs. 20.92 billion received for the auction, to settle Rs. 10 billion of maturing treasury bills.
http://www.news360.lk/economy/news-sri-lanka%E2%80%99s-25-03-2013-treasury-bill-rates-go-up-at-the-weekly-auction-784596

rainmaker · 3 Re: Treasury Bill Auction - 25/03/2013 Mon Mar 25, 2013 3:27 pm

rainmaker

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So 10 B is maturing and only 8B is rolled over...... interesting!

salt · 4 Re: Treasury Bill Auction - 25/03/2013 Mon Mar 25, 2013 3:33 pm

salt

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Last week also, the same thing happened
What happens these days - GOSL need more money these days due to festive season. They must be printing money - or if NOT, then balance portion must be from their T bill holding - would have let expire, but I doubt this

On top of this , they have borrowed (overseas) last week about USD 100 million
Don't know whether they print , if they print , it will fire back on currency later

rainmaker · 5 Re: Treasury Bill Auction - 25/03/2013 Mon Mar 25, 2013 3:40 pm

rainmaker

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@salt if 10B is maturing and 8B is being rolled over, then 2B is released.
It is not negative as it shows that they are increasing the money supply (allowing inflation)

What is negative is all those banks who keep submitting ridiculous bids to keep their money in risk free assets instead of actively investing funds. scratch

If GOSL needs more money, they would have taken all of the 20B for the entire year at a cheap rate of 11%...... somewhere up the line someone will say why didn't we take it Razz

salt · 6 Re: Treasury Bill Auction - 25/03/2013 Mon Mar 25, 2013 4:22 pm

salt

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@ rainmaker,
This gap f two billion could be from 2 souces
1. They can print money which could generate inflation
2. They may be part of their holding , which is not rolled over, which means reduction of debt and money supply

I don't agree with you last line.
We use tap system, other bidder must be at high rates that's why they have not gone for 6M bills , just to keep the rates low.
This happens only when rates rise
You might know better about the secondary market