Sri Lanka treasuries yields fall sharply

Feb 19, 2008 (LBO) — Sri Lanka’s 12-month Treasury bill yield fell 33 basis points to 19.10 percent while the popular three month bills fell 38 basis points to 18.59 percent at a an auction Tuesday, the government’s debt office said. The less liquid 6-month bills fell 27 basis points to 19.00 percent.

The government raised 7.2 billion rupees and retired 2.3 billion rupees, but was offering 6 and 12-month bills outside the auction at average yields soon after, dealers said.

The usual auction was brought forward by a day due to a public holiday tomorrow.

The debt office Monday rejected all bids at a bond auction which offered two and three year bonds.

The government is planning to raise 300 million dollars in late March to April through a syndicated loan officials have said.