Weighted average yields edge higher at year-end T-bill auction

By First Capital Research

The Public Debt Management Office of the Finance Ministry, Sri Lanka, concluded the final T-bill auction of the year, raising Rs.57.4 billion against an offered amount of Rs.120.0 billion, despite total bids summing to Rs.147.4 billion. 

Accepted amounts stood at Rs.12.5 billion, Rs.31.0 billion and Rs.13.9 billion for three-month, six-month and 12-month tenures, respectively. The weighted average yields increased by 19 bps to 7.74 percent, 32 bps to 8.27 percent and 26 bps to 8.45 percent, across all three-month, six-month and 12-month maturities, respectively.

In the wake of the T-bill auction outcome, yields moved higher amidst limited activity and ultra-low volumes in the secondary market. Accordingly, amongst the traded maturities, the 15.09.2029 bond traded at a rate of 9.80 percent, while the 15.12.2029 maturity traded within a range of 9.75 percent to 9.87 percent. The 01.07.2030 maturity traded between the range of 9.80 percent to 9.90 percent, whereas the 01.10.2032 bond was traded at a rate of 10.35 percent. On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.309.99/US dollar, compared to Rs.309.83/US dollar recorded the previous day. Overnight liquidity in the banking system expanded to Rs.175.2 billion, from Rs.124.3 billion recorded previously.