TB rate down - 06-02-2013

VISA · 1 TB rate down - 06-02-2013 Wed Feb 06, 2013 12:37 pm

VISA

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Short term down
364 days Flat

http://www.cbsl.gov.lk/pics_n_docs/latest_news/press_20130206e.pdf

rainmaker · 2 Re: TB rate down - 06-02-2013 Wed Feb 06, 2013 1:32 pm

rainmaker

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What's the restriction on foreign funds? I hear that there was something about limiting them to 5 year tenures.

Do you believe rates will continue to drop?

kukumarx · 3 Re: TB rate down - 06-02-2013 Wed Feb 06, 2013 2:05 pm

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I believe that the rates will start picking up again towards of the middle of year and peaking towards the end of the year.This has been the pattern for many years.

This is however assuming that nothing unpredictable happens For instance last year this was not the pattern because of the rupee depreciation in Jan

Last edited by kukumarx on Wed Feb 06, 2013 2:18 pm; edited 1 time in total (Reason for editing : For clarity)

sriranga · 4 Sri Lanka three, six month Treasuries yields drop Wed Feb 06, 2013 3:31 pm

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Feb 06, 2013 (LBO) - Sri Lanka's 3-month Treasuries yield dropped 22 basis points to 9.25 percent at Wednesday's auction but the 12-month yield was flat, data from the state debt office showed.

The 6-month yield dropped 12 basis points to 10.16 percent and the 12-month yield was flat at 11.11 percent.

The debt office, which is a unit of the Central Bank said 20 billion rupees of maturing bills was offered at the auction and 20.39 billion rupees in bids were accepted.

The debt office sold 1.3 billion rupees in 3-month bills, 2.0 billion rupees in 6-month bills and 17.0 billion rupees in 12-month bills.

Compared to the auction on the last week of December, the 3-month yield has dropped 75 basis points, the 6-month yield 1.16 basis points and the 12-month yield 58 basis points so far in 2013.
http://lbo.lk/fullstory.php?nid=208367545

rainmaker · 5 Re: TB rate down - 06-02-2013 Wed Feb 06, 2013 3:42 pm

rainmaker

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I am curious to know why the tbill rates go up towards to the end of the year. Is it due to budget deficit issues at the back end of the year?

If so why doesn't the CB mop up more bids?

kukumarx · 6 Re: TB rate down - 06-02-2013 Wed Feb 06, 2013 3:50 pm

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rainmaker wrote:I am curious to know why the tbill rates go up towards to the end of the year. Is it due to budget deficit issues at the back end of the year?

Its something like that. This year before the budget PBJ also spoke of some king of mismatch when asked to comment on how the target deficit would be reached when the deficit was very much higher (percentage wise)for the first 9 months.

Perhaps some economist on the forum can enlighten us.