Sri Lanka Treasuries plunge across tenors

May 21, 2008 (LBO) - Sri Lanka Treasuries yields plunged for the third week running with the benchmark 3-month yield falling 41 basis points to 17.



14 percent, the government's debt office said.

Corrected 6-month yield The government sold 4.0 billion out of 10.5 billion rupees of maturing bills, the debt office, which is a unit of the central bank, said.

The 6-month yields fell 20 basis points to 18.

30 percent, while the 12-month yield fell 10 basis points to 18.

50 percent.

However, before the auction 6 and 12 month bills were offered and placed in the market at yields from 18.

35 percent and 18.50 percent, in a bid to reduce pressure on the auction volumes, dealers said.

Foreign investors are also allowed to buy bills now.

Meanwhile, in bond markets a 2-year bond maturing on January 15, 2010 edged up to 17.

90 levels from 17.80 levels earlier on foreign selling, dealers said.