Sri Lanka’s Treasury bill yields dropped across all three maturities at Wednesday’s auction, with the Public Debt Management Office selling all Rs. 80 billion of offered bills plus an additional Rs. 8 billion on tap, official data showed.
The three-month bill cleared 7 basis points lower at 8.13 percent, with the debt office accepting Rs. 46.23 billion against Rs. 35 billion offered. The six-month yield slipped 1 basis point to 8.243 percent, with Rs. 28.54 billion sold against a Rs. 25 billion notice. The 12-month yield dropped 3 basis points to 8.49 percent, with all Rs. 20 billion offered cleared and an extra Rs. 5.21 billion accepted.
The six-month and 12-month maturities were also offered on tap, raising an additional Rs. 8 billion. Total issuance from the auction settled on May 15 reached Rs. 88,000 million.
The Public Debt Management Office said separately on Thursday that it sold a further Rs. 13 billion of bonds on tap at average rates set at this week’s auction, bringing total bond issuance for the week to Rs. 189.62 billion. The 1 August 2030 maturity bond was sold at a weighted average yield of 10.16 percent and the 15 June 2034 maturity at 10.24 percent.
Tuesday’s primary auction had already cleared Rs. 176.62 billion of 2030, 2034, 2036 and 2039 bonds.
The auction follows two days of mixed market signals. The rupee weakened to Rs. 329 against the US dollar — its softest level since December 2023 at midweek, while the Central Bank held the OPR at 7.75 percent without forward guidance. The Tuesday bond auction had cleared Rs. 176 billion in extended maturities, and the Inland Revenue (Amendment) Bill is scheduled for its second reading on May 19 ahead of the IMF Executive Board decision due within weeks on the combined fifth and sixth EFF reviews.
