Sri Lanka’s Treasuries yields plunge

May 15, 2013 (LBO) – Sri Lanka’s Treasuries yields plunged as much as 45 basis points at the first bill auction following a 50 basis point rate cut last week, data from the state debt office showed. The 3-month yield fell 43 basis points to 8.75 percent, the 6-month yield fell 29 basis points to 9.91 percent and the 12-month yield fell 45 basis points to 10.84 percent.

The debt office which is unit of the Central Bank said offered 15.0 billion rupees of bills for auction and accepted 19.1 billion rupees in bids selling 1.0 billion in 3-month, 2.9 billion in 6-month and 15.1 billion rupees worth 12-month bills.

The Central Bank cut its main policy rate by 50 basis points last week. In the secondary market rates started falling from Monday.

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