CBSL failed to sell the target LKR 120Bn at the primary auction

Throughout the last several weeks, CBSL successfully sold the required quantities at the primary auctions as the demand drove the prices substantially. Out of the LKR 120Bn auction today, CBSL managed to sell only LKR 45.6Bn where the bids received was LKR 204Bn.

CBSL opens up phase II after phase-I at the auction, which allows anybody to purchase at the weighted average rate. The rates were unchanged for 91 days and 182 days but a fall of six basis points witnessed in 364Days bills. Growing uncertainty of the domestic debt restructuring is creating volatility in the financial market.