Latvia sells 20 million lats debt, yields rise

Latvia's state treasury sold all 20 million lats ($36.97 million) of six-month and 12-month T bills on offer on Wednesday, but yields rose, the stock exchange said. The treasury offered 10 million lats of six-month and 10 million lats of debt maturing in January 2012 for sale and received total bids worth 35.66 million lats.
The average weighted yield for six-month paper rose to 1.230 percent, from 1.224 percent, and to 1.848 percent, from 1.780 percent, for 12-month T bills at the previous auctions on December 21, 2010. Yields on Latvia state debt have risen in recent months as the treasury has increased the amount of debt on offer and held regular auctions although there are plenty of lats in the market and limited opportunities to invest them. Latvian debt yields are still at relatively low levels even though they have increased slightly.