Sri Lanka Treasuries yields down after rate cut

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)

Dec 12, 2012 (LBO) – Sri Lanka’s Treasuries yields tumbled across maturities at Wednesday’s auction with the 12-month yield falling as much as 41 basis points, data from the state debt office showed. The debt office said it sold a billion rupees of 3-month bills, 3.9 billion rupees of 6-month bills and 8.5 billion rupees of 12 month bills.

Sri Lanka’s Central Bank cut its main policy rate by 25 basis points to 9.50 percent, as inflation spiked to the highest in four years, but Treasuries fell faster.

The 3-month yield fell 35 basis points from two week ago with last week’s bids rejected.

The 6-month yield fell 32 basis points to 11.78 percent.