ECONOMYNEXT – Sri Lanka has sold 19.0 billion rupees or 42 percent of 45 billion rupees of Treasury bills at this week’s auction, leaving 57 percent of bills unsold under a yield ceiling of 5.21 percent set by the debt office.
The debt office offered 10 billion rupees of 3-month bills and sold 14.5 billion rupees at a yield of 5.17 percent.
After offering 17.5 billion rupees of 6-month bills only 4.4 billion rupees was sold, also at 5.17 percent.
After offering 17.5 billion rupees of 12-month bills only 75 million rupees was sold at the ceiling yield of 5.21 percent. Buyers have begun to avoid longer term bills as uncertainty over interest rates grew.
Last week after failing to sell 59 percent of the bills under the price ceiling 22 billion rupees was printed, data showed.
The central bank owns over 980 billion rupees of bills, and it is not clear how much of the 45 billion rupees is already owned by the monetary authority. (Colombo/June22/2021)