Sri Lanka’s Treasury bill yields jumped sharply across all maturities at Wednesday’s auction, with the Public Debt Management Office selling Rs. 71.74 billion of the Rs. 140 billion offered, EconomyNext reported.
The 3-month bill yield rose 25 basis points to 10.09 percent. Of Rs. 65 billion offered at that tenor, the PDMO sold Rs. 56.59 billion.
The 6-month bill yield rose 26 basis points to 10.27 percent on a much sharper pullback in demand: of Rs. 55 billion offered, only Rs. 8.92 billion was sold.
The 12-month yield was up 14 basis points at 10.16 percent, with Rs. 6.22 billion sold of Rs. 20 billion offered.
All three maturities remain available on tap.
The unfilled auction is the second consecutive sharp yield repricing on the curve. The June 3 auction had seen yields jump 48 basis points across the curve, and Wednesday’s outcome confirms that investor appetite for new T-bills has remained subdued through the first full week after the Central Bank’s 25 basis-point OPR hike to 8.75 percent on May 26. Pairing the yield jump with the rupee surging 2.1 percent to Rs. 330.15 on Wednesday after CBSL’s exporter-conversion rule suggests dealers are repricing both rates and FX risk together.
