Treasury (T) Bill auction: Only 8% of 364-day maturities sold

By Paneetha Ameresekere | Published: 2:00 AM Dec 2 2021

By Paneetha Ameresekere

Central Bank of Sri Lanka (CBSL) was able to sell only 8.18 per cent (Rs 1,800 million) of the benchmark 364-day maturity original offer of Rs 22,000 million at a weighted average yield (WAY) of 8.18 per cent, down four basis points (bps) week on week (WoW) at yesterday’s Treasury (T) Bill auction.

Nonetheless, the sale of 126.26 per cent (Rs 22,726 million) of the 91 day maturity’s original amount of  Rs 18,000 million offered at yesterday’s auction at a WAY of 7.23 per cent, down 30 bps WoW to 7.23 per cent and  177.37 per cent (Rs 35,474 million) of the 182 day maturity’s original amount of Rs 20,000 million at a WAY of 7.97 per cent, down 56 bps WoW to 7.97 per cent, aided CBSL to sell the full complement of Rs 60, 000 million worth of T Bills offered. 

In related developments, the value of T Bill maturities which will have to be repaid by tomorrow is Rs 47,535 million, where their splits comprise 91 day maturities, Rs 10,905 million worth of 182 day maturities and Rs 13,294 million worth of 364 day maturities, respectively.

Issuing of T Bills is one of the popular ways that the Government of Sri Lanka (GoSL) raises money from the domestic market to meet its monetary commitments. Investing in T Bills are risk free, because in the event GoSL is unable to honour such debt, CBSL is mandated to print rupees, which action however is inflationary by nature, to repay such creditors. CBSL is the sole, mandated authority in the country to print money. CBSL is also the steward of GoSL debt.   The market, in their day to day activities require T Bills and T Bonds.

By Paneetha Ameresekere | Published: 2:00 AM Dec 2 2021

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