Sri Lanka Treasury bill yields fall after rate cut

April 22, 2009 (LBO) – Yields at the weekly Treasury bill auction plunged across the board with the 12-month yield falling 100 basis points to 15.40 percent, the government’s debt office said, after a 175 basis point rate cut earlier in the day. The 6-month yield fell 98 basis points to 14.90 percent and the 3-month yield fell 71 basis points 13.38 percent.

The central bank cut its penal reverse repo rate to 13.0 percent early Wednesday.

The government rolled over 8.0 billion rupees of maturing bills.

In bonds markets a security maturing on 01.04.2012 which was trading at around 16.65 percent fell to 15.80/90 levels, with business done at 15.85 dealers said.

A bond maturing on 01.03.2011 which traded around 16.60 percent yesterday fell to around 15.55/65 with business done at around 15.60.