Govt goes for Rs.29bn T-bill, bond auctions

21 Jan 2013 - {{hitsCtrl.values.hits}}

To make the most when interest rates are down, the government is to issue Treasury bills worth Rs.20 billion and Treasury bonds worth of Rs.9 billion through the auction that will take place today and tomorrow, the Public Debt Department of the Central Bank said.

Accordingly the debt office will offer Rs.1 billion worth of 3-month bills, Rs.1 billion worth of 6-month bills and Rs.18 billion worth of 12-month bills in an auction that will take place tomorrow.

With regard to Treasury bonds, Rs.3 billion, Rs.2 billion and Rs.4 billion are on offer on 4-year, 8-year and 15-year maturity periods respectively in an auction that happens today.

Bids are invited from the Primary Dealers in government securities, and bids should only be made electronically.

The Monetary Board of t he Central Bank cut policy rates by 25 basis points in December, marking a deviation from the tight monetary policy that was practiced to curb excessive credit originating from consumption.

According to the January Monetary Policy Review, the Central Bank expects inflation to moderate in 2013 and the rate cut to spur growth. According to Treasury Secretary, Dr.P.B Jayasundara, another rate cut is likely to take place in the mid part of the year.

Economy

Govt goes for Rs.29bn T-bill, bond auctions

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