Inflation ( CCPI)54.2% (Jan 2023)
GDP-11.8% (3Q 2022)
Unemployment5.0% (3Q 2022)
3M T-Bill Rate29.88%
12M T-Bill Rate27.72%
5Y T-Bond Rate29.00%
10Y T-Bond Rate30%
USD/LKR360/363
Click on the chart for more details
Reserves $2.12Bn (Jan 2023)
Cum. Trade Deficit $5.2Bn (Dec 2022)
Cum. Fiscal DeficitLKR 1,647Bn (Oct 2022)

Improved overnight liquidity pulls down the T-Bill rates

Interest RatesJan 11, 2023
Improved overnight liquidity pulls down the T-Bill rates
This story is available exclusively to charts.lk subscribers. Become an member and start reading now.

CBSL, in an aggressive mode, injected more money via the term Rev Repo auction into the money market in recent days. That resulted in a steep decline in 91Days T-Bill rate from 32.64% at end of 2022 to 31.15% within two weeks. CBSL had warned the market that the current interest rate required adjustment.

CBSL still borrowing very short-term basis (91 days) and market demand is three times higher than the CBSL offered volume while market demand for 364 days is a little lower 2 times.

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.