Treasury bill yields rose across all maturities at yesterday's bill auction held for the re-issue of Rs.10 billion maturing bills.
 

The 3-month yields rose 11 basis points to 11.73 percent while 6-month bill yields rose 20 basis points to 11.85 percent. The value of the bids received for 3-month bills was Rs.13.8 billion but only Rs.9.5 billion was accepted. For 6-month bills Rs.1.5 billion was accepted despite bids to the tune of Rs.3.79 billion.

 

The 12-month T-bill yields rose 30 basis points to 11.96 percent and only Rs.1.2 billion was accepted amidst bids amounting to Rs.5 billion.

 

According to the Public Debt Department of the Central Bank, the auction was oversubscribed with bids amounting to Rs.22.7 billion. It was decided to accept Rs.12.3 billion from the auction.

 

In February, the Central Bank of Sri Lanka hiked both the Repurchase rate and the Reverse Repurchase rate by 50 basis points each. Then again during last week the bank raised Reverse Repurchase rate by 75 basis points.