Sri Lanka raised Rs. 80.6 billion through its Treasury bill auction on Wednesday, 21 October, falling Rs. 19.4 billion short of the Rs. 100 billion offered, as the Government accepted most funds through short-term securities and rejected the bulk of bids for longer maturities.
According to the Public Debt Management Office, the auction attracted bids worth Rs. 186 billion, almost twice the amount offered. However, total acceptances remained below the target, with the Government favouring 91-day Treasury bills while taking substantially smaller amounts in the 182-day and 364-day categories.
The Government accepted Rs. 70.4 billion in 91-day bills against an offer of Rs. 40 billion, despite receiving bids worth Rs. 103.1 billion. The weighted average yield on the shortest-tenor securities increased by two basis points to 9.32%, compared with 9.30% at the previous auction.
Demand for the longer-dated securities also exceeded the amounts offered, but acceptances were limited. The Government took only Rs. 3.9 billion in 182-day bills against an offer of Rs. 35 billion and bids totalling Rs. 51.3 billion.
For 364-day Treasury bills, acceptances amounted to Rs. 6.3 billion against an offer of Rs. 25 billion, while bids reached Rs. 31.6 billion.
Yields on both longer maturities remained unchanged. The weighted average yield on 182-day bills held at 9.44%, while the rate on 364-day bills remained at 9.95%.
The settlement date for the auction was Friday, 23 October.
