Weighted average yields (WAYs) of the 2025 and 2027 maturities soared by a massive 976 and 195 basis points (bps) each to 22.01 per cent and 22.16 per cent, respectively, whilst Central Bank of Sri Lanka (CBSL), in a vain bid to contain yields, sold only 65.54 per cent (Rs 13,108 million) of the original parcel of Rs 20,000 million worth of 2025 maturities offered at yesterday’s Treasury (T) Bond auction.
The 2025 T Bond maturity was last sold at an auction two months and 8 days ago (20 February) where it fetched a WAY of a mere 12.25 per cent and the 2027 maturity at an auction held hardly three weeks ago (8 April), where it fetched a WAY of 20.21 per cent.
Meanwhile, at the 8 April auction, CBSL rejected all bids made for the 2025 maturity, while in another T Bond auction held on 29 March, CBSL rejected all bids made by the market for the two maturities on offer, i.e. the 2025 maturity and the 2029 maturity.
CBSL sold the totality of the 2027 maturity offered to the market (Rs 15,000 million) at yesterday’s auction. CBSL is the steward of GoSL debt.
By Paneetha Ameresekere