Treasury bill yields continue to decline

 The yields at the Treasury bill auction continued to ease yesterday, extending the weeks-long decline in short-term yields on expectations of easing rates and easing inflation. 

The yields fell between 1 to 18 basis points with the 6-month bills giving up the most at the bill auction, which offered Rs.80.0 billion across the three maturities.

Yesterday’s bill auction saw full acceptance, after near full acceptance last week. 

At the bill auction held yesterday, the 3-month bill yield slipped 1 basis point to 32.91 percent, 6-months yield came down 18 basis points to settle at 32.27 percent and the 12-month yield fell 6 basis points to 29.46 percent. 

Some may have expected the bill yields to come down more at the auction this week after the somewhat dovish tone of the officials at the post-monetary policy press briefing. 

Meanwhile, on Tuesday, the Central Bank issued Rs.50.0 billion in two bonds maturing on May 01, 2024 and May 15, 2026 at weighted average yields of 32.71 percent and 31.69 percent each.