TB auction 03-04-2013

VISA · 1 TB auction 03-04-2013 Wed Apr 03, 2013 2:40 pm

VISA

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http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130403e.pdf

salt · 2 Re: TB auction 03-04-2013 Wed Apr 03, 2013 3:31 pm

salt

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Looks like CBSL has started the printing press slowly.
Yes, could be, because new year also coming close

rainmaker · 3 Re: TB auction 03-04-2013 Wed Apr 03, 2013 3:46 pm

rainmaker

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salt wrote:Looks like CBSL has started the printing press slowly.
Yes, could be, because new year also coming close

Why do you say that? The rollover was 12B and only 8B was accepted.
So the maturity payments on the existing stock that was not reabsorbed will be 12B - 8B.

This extra 4B is like an injection into the economy.

You can see this as a positive. Why do the banks put so much bids? They also did not accept any 6 months bills.

salt · 4 Re: TB auction 03-04-2013 Wed Apr 03, 2013 4:03 pm

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Usually, his happens when CBSL is under pressure to stop upward movement of borrowing rates, balance is met by CBSL printing . Additional, they place secretly private placements with EPF/ETF/NSB

If they have let 4Bn expired, this is good. But, this is happening for at least 3 weeks, this is new year period, government need to pay salaries & advances before new year. I can't believe what you said. For sure , they must be printing

rainmaker · 5 Re: TB auction 03-04-2013 Wed Apr 03, 2013 4:15 pm

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salt wrote:Usually, his happens when CBSL is under pressure to stop upward movement of borrowing rates, balance is met by CBSL printing . Additional, they place secretly private placements with EPF/ETF/NSB

If they have let 4Bn expired, this is good. But, this is happening for at least 3 weeks, this is new year period, government need to pay salaries & advances before new year. I can't believe what you said. For sure , they must be printing

They are not printing as money expansion has to be allowed due to foreign currency being converted to LKR. Q1 has been good for SL.

If they are printing then you will have to check the Biyagama export zone Smile

salt · 6 Re: TB auction 03-04-2013 Wed Apr 03, 2013 4:47 pm

salt

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rainmaker,
When you revolver of Tbill comes, they have two options only
1. If part of t bill was held by CBSL, they can let that portion expire. That's good, CBSL will eventually , bring down its holdings

2. they can still reject bid. But, to cover that amount CBSL by T bills and print similar amounts

I think , these days , number 2 is happening, because GOvt needs money in new year periods. historically, this is happening in these months
BTW, i am not bother if they print money in Biyagama. That's normal. Only worry ,if they do it in Colombo 1

Redbulls · 7 Sri Lanka Treasury bill yields frozen, bids rejected Wed Apr 03, 2013 4:58 pm

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Apr 03, 2013 (LBO) - Sri Lanka's three and six months Treasury bill yields were frozen Wednesday with market bids rejected, data from the state debt office showed.

The 3-month yield was kept at 9.26 percent, 6-month bids rejected and the 12-month yield was also flat at 11.35 percent.

The debt office which is a unit of the Central Bank offered 12.0 billion rupees of maturing bills at the auction and accepted only 8.8 billion rupees.

Sri Lanka prints tens of billions of rupees in April to pay festival advances to state workers amid seasonal cash draw downs from the banking system ahead of a traditional new year.

This year however there is over 30 billion rupees of excess liquidity in money markets.
http://lbo.lk/news/Sri_Lanka_Treasury_bill_yields_frozen,_bids_rejected/973033236