Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.91%
12M T-Bill Rate10.21%
2Y T-Bond Rate10.65%/ 10.75%
4Y T-Bond Rate11.80% / 11.85%
USD/LKR303/304
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Investors are pouring money into short term T-bills at the primary auction

Interest RatesApr 27, 2022
Investors are pouring money into short term T-bills at the primary auction
The demand for the short-term T-bills ( 91Days) has immerged due to the higher interest rate and low risk. 91Days bill was up marginally from 23.21% to 23.53%, while 182Days bill fell significantly from 24.77% to 23.96% removing the abnormality. 364Days Bills also fell but marginally from 24.36% to 24.09%. Almost three times demand was observed for 91Days bills compared with 182days and 364Days. CBSL has managed to sell little more than LKR 8Bn securities which are maturing among market participants, this, in turn, reduces the money printing.

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.