Sri Lanka bill yields fall after rate cut

Nov 18, 2009 (LBO) – Sri Lanka Treasury bill yields fell across the board following a 50 basis point rate cut earlier in the day, and with the 3-month yield slipping below the repo rate at which cash is drained from the system. The debt office, which is a unit of the Central Bank, said 10.7 billion rupees of bills were sold and only 9.0 billion rupees of bills matured.

The government’s debt office said the 3-month yield fell 48 basis points to 7.25 percent, the 6-month yield fell 47 basis points to 8.33 percent and the 12-month yield fell by 39 basis points to 9.17 percent, at Wednesday’s auction.