Govt. raises Rs.26bn after offering Rs.40bn in T-bills

The Central Bank saw its primary auction held this Wednesday to raise Rs.40 billion via treasury bills, receiving bids worth of Rs.54.04 billion. But the bank accepted little less than half of the bids. 

The Public Debt Department of the Central Bank, the agency responsible for raising money for the government via bills and bonds, offered Rs.8.5 billion in three-month bills, Rs.12.5 billion in six-month bills and Rs.19 billion in 12-month bills. 

While the department received bids worth of Rs.54.04 billion at the auction under all three tenures, it accepted only Rs.6.475 million in three-month bills, at 4.67 percent, Rs.2.165 billion in six-month bills, at 4.77 percent and Rs.17.252 billion in 12-month bills, at 5.00 percent, which amounted to a total of Rs.25.89 billion.  The yields were little changed from the week earlier primary auction, at 4.65 percent and 4.76 percent for three and six-month bills while the yield for 12-month bills remained unchanged. 

The Public Debt Department is tasked with accepting bids at yields favourable to the government and the Central Bank considers there is more room for the rates to fall, as indicated at the last Monetary Policy meeting held on November 25. 

By the week ended on December 2, Sri Lanka had a total outstanding treasury bill stock of Rs.1,495.72 billion and a treasury bond stock of Rs.5,412.98 billion. 

The outstanding stock of treasury bills and bonds held by foreigners slipped 0.24 percent in rupee terms in the week ended on December 2, from the week earlier. 

As of December 2, foreigners held a treasury stock of Rs.8,573.72 million.