Sri Lanka’s Treasury-bill weighted-average yields increased across all three maturities at the latest auction, while the Public Debt Management Office accepted the full Rs.70 billion offered.
The weighted-average yield on the 91-day Treasury bill rose by 15 basis points to 9.18%.
The 182-day yield increased by 12 basis points to 9.36%, while the 364-day yield rose by 11 basis points to 9.88%.
The auction offered:
- Rs.25 billion in 91-day bills;
- Rs.25 billion in 182-day bills; and
- Rs.20 billion in 364-day bills.
The full amount offered in each maturity was accepted, taking total accepted issuance to Rs.70 billion.
Total bids amounted to approximately Rs.171.6 billion, equivalent to about 2.45 times the amount offered.
The increase in weighted-average yields reversed the recent downward movement in Treasury-bill auction yields.
Treasury-bill yields provide one indicator of the Government’s short-term domestic borrowing cost and financial-market conditions.
However, the movement in a single auction should not be attributed to one economic or political cause without supporting evidence.
Settlement for the auction is scheduled for September 18.