CB accepts Rs. 24.6bn from Rs. 13bn T-bill auction

sriranga · 1 Treasury bill auction held on 05 June 2013 Wed Jun 05, 2013 1:07 pm

sriranga

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http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130605e.pdf

CB accepts Rs. 24.6bn from Rs. 13bn T-bill auction Cbsl15

rainmaker

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Seems like CFVF will like to keep their money....

CSE.SAS · 3 CB accepts Rs. 24.6bn from Rs. 13bn T-bill auction Thu Jun 06, 2013 12:59 am

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Benchmark Treasury bill yields eased at yesterday’s (05) primary market auction of maturing bills amounting to Rs. 13 billion with the Public Debt Department of the Central Bank accepting Rs. 24.6 billion. Total bids amounted to Rs. 52.6 billion.

"The government needs cash and the Central Bank seems to want to sell down its Treasury bill holdings, this may be why an additional 11 billion rupees was absorbed from the system," one treasury dealer said.

The three month bill yield eased to 8.70 percent from 8.73 percent a week earlier and the six month yield eased to 9.81 percent from 9.90 percent. The 12-month yield eased marginally to 10.85 percent from 10.86 percent last week.

The Central Bank has cut monetary policy rates by 50bps since December in a bid to boost credit growth and the economy.

Treasury dealers expect benchmark yields to ease further if inflation moderates going forward.

"The private sector is sluggish with a wait-and-see attitude and it seems they do not want to borrow at the moment. Because of this, banks have excess liquidity positions and no one to lend to. Treasury securities are the next best thing so we could see bank investments grow which would push down benchmark yields further," one dealer said.

The rupee strengthened against the US dollar yesterday on export conversions, closing at Rs. 126.40/45 against the US dollar from an opening position of Rs. 126.50/55.

Secondary Treasury bond yields closed virtually flat.

Excess liquidity in the banking system fell to Rs. 19.1 billion yesterday from Rs. 21.2 billion the previous day.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=80638