T bill yields up 20 basis points
22 February 2012 08:31 am
Sri Lanka Treasury bill yields rose across all maturities at yesterday's auction, with 12 month yields topping 10 percent for the first time this year, data released by the Public Debt Department of the Central Bank showed.
Accordingly, 12-month yields rose 20 basis points to close at 10.19 percent against the last auction while 6-month and 3-month yields also rose 20 basis points to close at 9.64 percent and 9.51 percent respectively.
According to the Debt Department, the auction was oversubscribed with bids amounting to Rs.20.1 billion being received. It was decided to accept Rs.9.1 billion from the auction.
Sri Lanka, during the early part of this month, increased policy rates by 50 basis points to curb credit growth.
Consequently, the Central Bank of Sri Lanka (CBSL) in a statement said its new Repurchase rate and the Reverse Repurchase rate will be 7.50 and 9 percent respectively.