Monday July 12, 2021 8:38 am
Monday July 12, 2021 8:38 am
ECONOMYNEXT – Sri Lanka has raised ceiling rate for 12-month Treasuries by 02 basis points to 5.25 percent, for this week’s Treasuries auction where 56 billion rupees of bills will be offered.
The ceiling policy rate has operated as a de facto policy rate through which large volumes of debt is monetized when the central bank purchases bills with printed money to defend a pattern of Treasuries yields leading to a failure of the auction, despite there being demand at a higher rate.
In recent months demand has concentrated around 3-month bills with market participants expecting rates to move up and a gap developing between the one year price control and the two year bond.