Sri Lanka Treasuries yields plunge

Dec 19, 2012 (LBO) – Sri Lanka’s Treasuries yields plunged at Wednesday’s auction for the second week running with the 12 month rate falling as much as 27 basis points to 12.18 percent, data from the state debt office showed. The 3-month yield fell 21 basis points to 10.23 percent and the 6-month yield fell 25 basis points to 11.53 percent.

The debt office, which is a unit of the Central Bank said it sold 1.0 billion rupees in 3-month bills, 6.0 billion in 6-month bills and 10.0 billion rupees in 12-month bills.

In the secondary market bill yields fell further after the auction, dealers said.

Six month bills were quoted around 11.20/40 percent and the 12-month bills were quoted around 11.90/12.05 percent, dealers said.

Bonds were also down with 2-year gilts quoted around 12.00/15 percent today from 12.35/35 percent yesterday.

Three years were quoted around 12.15/25 percent down from 12.25/35 percent.

Five year bond yields slipped to around 12.20/30 percent from 12.40/45 a day earlier.

Six year’s fell to around 12.45/50 percent from 12.77/82 percent.