May 05, 2010 (LBO) – Sri Lanka Treasury bill yields eased at Wednesday’s auction despite the government raising an additional billion rupees than the maturing stock, the government’s debt office said. The 3-month yield fell 16 basis points to 8.24 percent with only a billion rupees of bill being sold and the 6-month yield fell 13 basis points to 8.97 percent with 4.0 billion rupees of bills being sold.
The 12-month yield fell 05 basis points. The government sold 8.0 billion in one year bills.
Bill yields fell for the second successive week.
Sri Lanka has also delayed presenting a formal budget till July though earlier expectations have been of a budget by April.
Analysts say delaying a budget will allow the government to put-off state salary increments which is the single largest cashflow expenditure item.