Treasury bill yields plunged in the first bill auction after a 50 basis point policy rate cut by the Central Bank last week, the data released by the Public Debt Department of the central Bank showed.

The 3-month bill yields fell as much as 43 basis points to 8.75 percent while 6-month yields fell 29 basis points to 9.91 percent. The12-month bill yields plunged 45 basis points to 10.84 percent.

The government sold Rs.1 billion worth of 3-month bills, Rs.2.9 billion worth of 6-month bills and Rs.15.19 worth of 12-month bills.

The auction was held to re-issue Rs.15 billion maturing bills and was versubscribed with bids amounting to Rs.42.6 billion.

The Central Bank last Friday cut the policy rates from 50 basis points thereby placing the repurchase rate at 7.00 percent and the reverse repurchase rate at 9.00 percent.