The Treasury bill yields across maturities fell at yesterday’s bill auction, recording a slide in the yields, amid the easing monetary conditions with the back-to-back policy rate cuts by the Central Bank since June.
The Monetary Board yesterday slashed the Statutory Reserve Ratio (SRR) by 200 basis points to 2 percent in a surprising move to infuse Rs.200 billion into the banking system and thereby to lower the market lending rates further.
The Public Debt Department (PDD) of the Central Bank on behalf of the Treasury yesterday raised Rs.180 billion through bill sales, matching the offered amount. The bill auction received bids to the tune of Rs.316.9 billion.
The PDD raised Rs.90 billion through three-month bills, matching the amount offered. The three-month bill yield fell 12 basis points to 19.78 percent.
The six-month bill yields fell the most by 46 basis points to 17.11 percent. The PDD raised Rs.50 billion through six-month bills, matching the offered amount.
Rs.40 billion was raised through 12-month bills, matching the amount offered and the yields fell 22 basis points to 13.94 percent.
