Sri Lanka Treasuries auction succeeds, yield curve inverted

ECONOMYNEXT – Sri Lanka’s has sold 74.5 billion rupees of Treasury bills at an auction held Monday the first successful Treasuries auction held in months, through the short term yield curve has got inverted in small volumes.

The debt office sold 74.25 billion rupees of 3-month bills at 8.39 percent, up 35 basis points, after offering 20 billion rupees.

There were 158.5 billion rupees of bids for the 3-month bills.

The debt office sold only 200 million rupees of 6-month bills at 8.16 percent, up 96 basis points from 7.20 percent two weeks ago, after offering 22 billion rupees of bills.

Only 50 million rupees were sold in one year bills at 8.17 percent up 89 basis points from two weeks ago.

With the 3-month yield at 8.39 percent and the 12-month at 8.17 percent the short term yield curve is now inverted, though volumes are tiny.

Market expectations for the 12-month yield is above 9.0 percent. (Colombo/Oct18/2021)

Leave a Reply

#Tags; lanka c news, jvp news, hiru news, gossip lanka news, sri lanka news