The Treasury bill yields at yesterday's bill auction for the re-issue of Rs.12 billion maturing bills, fell significantly amidst a policy rate cut announced by the central Bank.

The three-month T-bill yields, for which bids were not accepted in the last auction, was at 10.44 percent while six-month bill yields fell 32 basis points to 11.78 percent. The twelve-month bill yields fell 41 basis points to 12.45 percent.

The government accepted Rs.1 billion in three month bills, Rs.3.9 billion in six-month bills and Rs.8.5 billion in twelve-month bills.

The auction was oversubscribed with bids amounting to Rs.38.8 billion being received.