Yield rates on Treasury bills declined further at the primary auction held on November 11, 2009, the Central Bank said.
The yield rate on Treasury bills with a maturity of 91 days declined by 41 basis points to 7.73 %, the lowest since April 2005. This trend was reflected in the yield rates of Treasury bills with the maturities of 182 days and 364 days, too. With this reduction, primary market yield rates of the Treasury bills have declined by 947 – 950 basis points during the past 12 months period.
The secondary market Treasury bill yield rates also continued on its decelerating path during this period, the bank said. “The reduction in yield rates observed during the recent past is in line with the gradual easing of the monetary policy stance by the Central Bank of Sri Lanka, increased foreign investor participation in the Government securities market, prevailing liquidity position in the market and positive view of the market on the deceleration of inflation rate,” it said.