May 14, 2008 (LBO) – Sri Lanka’s Treasury bill yields tumbled across tenors with the benchmark 3-month yield falling 54 basis points to 17.55 percent, the government’s debt office said. The debt office which is a unit of the country’s central bank said the government sold 6.0 billion rupees worth of bills out of a maturing tranche of 11.0 billion rupees and retired the balance at Wednesday’s auction.
Two billion rupees worth 3-month bills were sold.
The 6-month yield fell 11 basis points to 18.50 percent with 3.6 billion rupees worth bills being sold. The 12-month yield fell 19 basis points to 18.60 percent with only 370 million rupees of bills being sold. Sri Lanka now allows foreign investors to buy treasury bills.