Sri Lanka Treasuries yields fall

Nov 04, 2009 (LBO) – Sri Lanka’s Treasury bill yields fell across the board with the 3-month yield falling 36 basis points to 8.14 percent, at Wednesday’s auction just above the 8.00 repo rate at which the monetary authority drains liquidity from markets. The Central Bank’s reverse repo rate at which cash in injected to the market is at 10.50 percent but with excess liquidity generated through a dollar peg from April the rates are now influenced by the repo window.

The 6-month yield fell 33 basis points to 9.02 percent, and the 12-month yield fell 20 basis points to 9.68 percent.

The government’s debt office said 12.2 billion rupees of bills were sold and only 11.0 billion rupees of bill matured in the week.