Big draw at TBill auction, CB ignores most bids, yields up

Reaffirming the upward pressure on interest rates, the three-month and 12-month Treasury Bill Yields rose by 15 basis points (bps) each to 8.58% and 9.21% respectively at yesterday’s auctions.

The bids worth Rs. 4 billion for six-month Treasury bills were however rejected by the Central Bank.

The weekly primary auction was for the re-issue of Rs. 10 billion maturing Treasury bills. The auction was oversubscribed with bids amounting to Rs. 16.7 billion received. The Central Bank decided to accept Rs. 3.06 billion from the auction.
Appetite for short term was high as Rs. 7.49 billion bids were received for the 91-day maturity Bills, of which however only Rs. 2.06 billion was accepted. The 364-day bill auction drew Rs. 5.3 billion in bids, of which Rs. 1 billion was accepted.