Central Bank’s largest YTD T-bond auction falls short of full acceptance

By First Capital Research

The Central Bank conducted its year-to-date largest T-bond auction, raising Rs.240.7 billion, 18.5 percent below the initially offered amount of Rs.295.0 billion. 

This amount was raised through the issuance of 2029, 2031, 2033 and 2037 maturities, which registered weighted average yields of 9.41 percent, 10.00 percent, 10.68 percent and 10.83 percent, respectively. 

Following the T-bond auction amongst the traded maturities, the 15.06.2029, 15.09.2029, 15.10.2029 and 15.12.2029 maturities were traded at the range of 9.35 percent to 9.50 percent. 

Meanwhile, the 15.12.2032 maturity was changed the hands at the rates between 10.35 percent to 10.40 percent. 

In the forex market, the Sri Lankan rupee appreciated against the greenback, closing at Rs.299.97/US dollar, compared to the previously seen rate of Rs.300.22/US dollar. 

Meanwhile, overnight liquidity in the banking system expanded to Rs.128.8 billion from the previously seen level of Rs.123.5 billion.