Inflation ( CCPI)3.4% (Nov 2023)
GDP-3.1% (2Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate14.67%
12M T-Bill Rate12.88%
2Y T-Bond Rate13.95%/ 14.05%
4Y T-Bond Rate14.20% / 14.30%
USD/LKR327/328
Reserves $3.58Bn (Nov 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

CBSL able to sell only 91Days T-bills at primary auction

Interest RatesFeb 5, 2022
CBSL able to sell only 91Days T-bills at primary auction

CBSL borrowing funds from the public via T-Bill primary auctions in three different maturities namely 91Days, 182Days, and 364Days. Investors demand different risk premiums for those three maturities to lend money to CBSL. CBSL has been heavily relying on short-term borrowing (at primary auctions) as they only managed to sell 91Days at today's auction too.

But 91days bill rate fell slightly. The weighted average borrowing tenor of the CBSL at TBill actions stands at 94Days which is also close to three months T-bills. The weekly average salle of 364Days T-bill at auction was 2.5Bn in 2021 against the average weekly auction size of LKR 49.8Bn.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.