Treasury Bill Yields Rise Across The Board
Posted 21,October

By Chaveendra Dunuwille

In Local News

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In the recent auction held on Monday, the Treasury bill yield across all three tenures rose by large margins. The auction was supposed to be held on Wednesday, was shifted to Monday due to the Poya holiday. The latest auction was the first successful auction hosted by the Central Bank in many months. 

The yields across the board in all three tenures jumped between 35-96 basis points. The 6-month & 1-year bills climbed the most as the Central Bank Public Debt Department rejected all bids under the two tenures last week. 

The Central Bank offered LKR 20 billion in 3-month bills but were accepted only LKR 74.25 billion out of the LKR 158.53 billion worth of bids received at 8.39%. This resulted in an increase by 35 basis points. With the latest addition, 3-month bills have added 231 basis points since the reference yields were lifted in mid 

September. 

The CB offered the 6-month bills at LKR 22 billion. The Central Bank only accepted LKR 200 million from bids worth LKR 23.8 billion with a yield of 8.16%. This resulted in an increase of 96 basis points. At the same time, one-year bills were offered at LKR 32.5 billion. The bank only accepted LKR 50 million from the LKR 32.5 billion bids.