Sri Lanka Treasuries yields drop

Manjula Mathews, President of the Board of Directors of Habitat for Humanity Sri Lanka (L) and Yu Hwa Li, National Director of Habitat for Humanity Sri Lanka (R) present Rakhil Fernando, Managing Director of Daraz (C) with Goodwill Ambassador Certificate

Jan 08, 2014 (LBO) – Sri Lanka’s Treasuries yields dropped across maturities at Wednesday’s auction with the 12-month yield falling 53 basis points to 7.42 percent, data from the state debt office showed. The 3-month yield fell 42 basis points to 7.00 percent and the 6-month yield dropped 33 basis points to 7.20 percent.

The state debt office offered 15 billion rupees of bills to the market and accepted 18.5 billion rupees in bids.

Dealers say bill yields have been falling partly due to real market developments, but an operational change in central bank’s domestic operations where bill are no longer given to back overnight excess cash deposits may also be a factor in boosting demand for bills.