T-bill auction falls short as 4.7% of offered amount being accepted

By First Capital Research

Ahead of today’s T-bond auction, the secondary market saw some selling pressure in the morning hours. 

The 2028 maturities traded between 10.30 percent - 10.65 percent, while the 2029 and 2031 maturities were traded at 11.00 percent and 11.25 percent, respectively. 

Meanwhile, the Central Bank conducted its T-bill auction worth Rs.80.0 billion yesterday, accepting only 4.7 percent of the total amount offered. The weighted average yield rates for the three-month, six-month and 12-month T-bills remained unchanged at 7.59 percent, 7.91 percent and 8.31 percent, respectively, compared to the previous auction. 

The Central Bank accepted Rs.2.9 billion from the three-month T-bill, offering Rs.30.0 billion and Rs.422.0 million and Rs.419.0 million from the six-month and 12-month T-bills, respectively, from the offered amounts of Rs.30.0 billion and Rs.20.0 billion.

However, after the announcement of the T-bill auction results, the secondary market witnessed a slight buying interest. Accordingly, the 15.02.2028, 15.03.2028, 01.05.2028, 01.07.2028, 15.10.2028 and 15.09.2029 maturities traded at the rates of 10.25 percent, 10.30 percent, 10.35 percent, 10.45 percent, 10.50 percent and 10.90 percent, respectively. 

Furthermore, in the forex market, the Sri Lankan rupee depreciated against the greenback, ending the day at Rs.298.6/US dollar, in comparison to Rs.297.5/US dollar registered on the previous day.