Rs 97,500M T Bill auction, largest ever

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By Paneetha Ameresekere

Central Bank of Sri Lanka (CBSL) data of Tuesday  (12 April) showed  that on the coming Wednesday (20) it will be holding its largest ever weekly Treasury (T) Bill auction, an auction for the issue of  Rs 97,500 million worth of T Bills.  Prior to the coming Wednesday’s auction, the largest ever T Bill auction held by the CBSL was for a Rs 97,250 million on 19 January 2022.

The coming Wednesday’s T Bill auction is being held in the backdrop that CBSL, on behalf of the Government of Sri Lanka (GoSL), will have to repay Rs 97,320 million worth of maturing T Bills by the coming Friday (22 April), which will be the largest amount of maturing T Bills which it will have to repay to the market to date, data showed.  Settlement of the coming Wednesday’s T Bill auction too is on the coming Friday. However, T Bills held by CBSL which also mature by the coming Friday are unknown as CBSL doesn’t reveal such information.

Splits of the coming Wednesday’s Rs 97,500 million 

T Bill auction are 91-day maturities (Rs 47,500 million), 182-day maturities (Rs 27,500 million) and 364-day maturities (Rs 22,500 million).  Meanwhile, the splits of the Rs 97,320 million maturities which will have to be repaid to the market by next Friday are Rs 96,620 million worth of 91-day maturities, Rs 200 million 182-day maturities and  Rs 500 million 364-day maturities, respectively.  In related developments, Monday’s weekly T Bill auction fetched the highest ever weighted average yields (WAYs) in Sri Lanka’s 98 year old T Bill history for the 182 and 364-day maturities and the second highest for the 91-day maturities respectively. 

They were WAYs of 19.71, 22.73 and 23.36 per cent for the 91-day,182-day and 364-day maturities respectively.