CBSL T-bond auction concludes with 3.0x oversubscription

By First Capital Research

Yesterday, the Central Bank of Sri Lanka (CBSL) conducted a T-bond auction worth Rs.155.0 billion, raising a total of Rs.60.0 billion through the 15.06.2029 maturity, which recorded a weighted average yield of 10.30 percent. 

Additionally, Rs.55.0 billion and Rs.40.0 billion were raised through the 15.03.2031 and 15.03.2035 maturities, respectively, at the weighted average yields of 10.96 percent and 11.22 percent. The auction was fully subscribed, signalling improved investor confidence.   

Following the auction, the secondary market saw moderate trading volumes with limited activity. The 15.06.2029, 15.09.2029 and 15.12.2029 maturities traded within a range of 10.30 percent to 10.45 percent. Notably, the 15.09.2027 maturity attracted foreign buying interest, with trades occurring between 9.60 percent and 9.50 percent.

Moreover, the recent data published by the CBSL reveals that the AWPR for the week ending April 25, 2025 decreased by 5bps, settling at 8.39 percent, showcasing a notable reduction from the previous week. 

In the forex market, the Sri Lankan rupee strengthened against the greenback, closing at Rs.299.7/US dollar, compared to the previous day’s rate of Rs.300.1/US dollar. Meanwhile, overnight liquidity in the banking system increased to Rs.144.0 billion, up from Rs.120.8 billion in the prior session.