Sri Lanka T-bill rates spike

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

Sept 25, 2008 (LBO) – Sri Lanka’s Treasury bill yields spiked at Wednesday’s auction while the government resumed sales of 3-month bills, the government’s debt office said. The 12-month bill yield also spiked 72 basis points 19.06 percent.

The government raised 525 million rupees selling 3-month bills at 17.22 percent after an absence of several weeks.

When three month bills are not offered, three month bills move out of the government securities market.

Yields of 6-month bills climbed 83 basis points to 18.28 percent from 17.45 percent a week earlier with 2,034 million rupees of bills being sold.