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%
Reserves $3.58Bn (Nov 2023)
Cum. Trade Deficit $3,307 Mn (Sep 2023 cumulative)
Cum. Fiscal DeficitLKR 1,614 Bn (Sep 2023)

Primary auction yields are at wild swing as 3months rate fell by more than 2.50%

Interest RatesJul 27, 2022
Primary auction yields are at wild swing as 3months rate fell by more than 2.50%

The Treasury bill rates fell at the primary auction today, where 91Days bill rate fell from 31.50% to 28.86% while CBSL accepts LKR 60Bn. 182Days Bill rate fell from 29.97% to 29.24% and 364Days bill also fell from 29.82% to 29.53%.

The yields are having massive volatility across the last few weeks that push the interest rate volatility very high level. Yields were above 30% for the last two weeks at the primary auction and funds are flooring to the Gsec market move out from other asset classes.

This may result, in a further reduction of the bank’s credit to the private sector as FDs are moving to the T-Bills.


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