Treasury bill rates increase at auction

Treasury bill rates increase at auction

Treasury bill rates increase at auction

Written by Staff Writer

10 Feb, 2016 | 10:13 pm

Treasury bill rates increased at the treasury bill auction held today. The treasury bill rates are considered a major indicator that determines market interest rates.
The auction took place on Wednesday in order to raise short term funding for the government. On February  5, the Central Bank of Sri Lanka announced that this auction would be held in order to raise Rs.20 000 million for the government.

However, the Central Bank says that while they had received bids worth Rs.49 000 million, they had decided to accept 28 048 million rupees in bids..

From the treasury bills accepted, 23 535 million rupees worth of treasury bills are set to mature in six months, while the remaining 4513 million rupees worth of treasury bills are set to mature in one year.

While the interest rates for both these categories have increased when compared to earlier auctions held, the interest rate for a six-month treasury bill stood at 5.75 percent, while the interest rate for a one year treasury bill was 7.95 percent.

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