T-Bill auction subscribing on downward trend despite liquidity improved

The T-Bill rates fell marginally at the primary market auction held today there is a marginal drop in 91 days and 364 days, rates. But CBSL managed to sell a lower amount than they planned (offered) to sell. CBSL activated the OMO auction to improve the liquidity in the market but it wasn’t effective enough to reduce the yields substantially.

The number of bids received at the primary auction has fallen substantially and that’s the key reason for CBSL to use the second phase T bill sale. Furthermore, this would help to avoid money printing which services domestic debt payments.