CBSL allowed 91Days T-bill rates to fly from 7.15% to 8.04% at the primary auction ahead of the monetary policy statement tomorrow. PDD rejected all the other bids summited by PDs and banks for 182Days and 364Days. CBSL sold LKR 50.42Bn in 91day bills but failed to raise LKR 84.095Bn that was required to settle on Friday. CBSL has more Bond liabilities on coming Friday to repay LKR 89.5Bn (with coupon), where they managed to sell LKR 81Bn Bonds to roll over the debt. Both would probably increase the money printing by another LKR 43Bn.
Sri Lanka Tbill rate jumped by 90 basis points as rate hike loom
Interest RatesOct 13, 2021