On July 07, the Central Bank had a 7-day repo auction. Tying up money for a longer period will reduce the intensive to grant loans but analysts have urged the Central Bank to sell bills outright and kill liquidity to which will allow a rupee peg to strengthen.
Sri Lanka is expected to launch a billion US dollar bond next week, at least half of which will be used to repay a maturing foreign loan.
Forex dealers say sentiment on the rupee is generally positive.
In money markets overnight gilt-backed repos were quoted around 9.40/50 percent and call money was quoted at 10.40/50 percent.