Treasury Bill market interest rates decline

The yields at the Treasury Bill primary auction held yesterday declined to a single digit level of 9.70 percent for three months Treasury Bills for the first time after November 2005, a Central Bank press release said.

With this reduction, primary market yield rates of the Treasury Bills have declined by 763-795 bps during the year 2009.

The primary market yield rates of Treasury Bonds also followed the same trend and declined by 956 bps. The decline in yields is witnessed in all maturity classes of Government securities extending up to the 10-year maturity horizon.

This reduction in yield rates is in line with the gradual easing of the monetary policy stance by the Central Bank of Sri Lanka and increased foreign investor participation in the Government securities market, the release said.