T-bill yields up across all maturities; 3-month yield up 107bps

The Treasury bill yields rose across all maturities at yesterday’s auction, with the short-term tenure bill yields rising the most amid speculation that the country’s rupee debt will also be restructured along with the dollar-denominated debt.  The three-month bill yield rose 107 basis points to 30.51 percent while the six-month bill yields rose 58 basis points. The one-year bill yields rose 69 points.

The Public Dept Department (PDD) of the Central Bank, on behalf of the Treasury, sold Rs.38.8 billion worth of three-year bills, though offers were received for Rs.58.2 billion.

Rs.9.5 billion worth of six-month bills and Rs.8.3 billion worth of one-year bills were also sold at yesterday’s auction, despite the two maturities receiving Rs.26.2 billion and Rs.24.6 billion worth of bids, respectively.

The PDD offered Rs.90 billion worth of bills across the three maturities but accepted only Rs.56.7 billion.