Long term T-bill yields down

The long term Treasury bill yields fell at the T-bill auciton held yesterday to re-issue Rs.12 billion maturing bills, the Public Dept Department of the Central Bank said.

The 6-month T-bill yields fell 10 basis points to 9.70 percent while 2-month yields fell 19 basis points to 10.66 percent. The 3-month bill yields remained unchanged at 8.66 percent.

The government sold Rs.627 million worth of 3-month bills, Rs.7.7 billion of 6-month bills and Rs.34.1 billion of 12-month bills.

The Central Bank slashed policy rates by 50 basis points in May and cut the commercial bank reserves by 2 percent yesterday to encourage lending.