Sri Lanka Treasury bill yields fall after rate cut

April 22, 2009 (LBO) - Yields at the weekly Treasury bill auction plunged across the board with the 12-month yield falling 100 basis points to 15.

40 percent, the government's debt office said, after a 175 basis point rate cut earlier in the day.

The 6-month yield fell 98 basis points to 14.

90 percent and the 3-month yield fell 71 basis points 13.38 percent.

The central bank cut its penal reverse repo rate to 13.

0 percent early Wednesday.

The government rolled over 8.0 billion rupees of maturing bills.

In bonds markets a security maturing on 01.04.2012 which was trading at around 16.

65 percent fell to 15.80/90 levels, with business done at 15.



85 dealers said.

A bond maturing on 01.03.2011 which traded around 16.60 percent yesterday fell to around 15.

55/65 with business done at around 15.60.