T-bill auction undersubscribed for third straight week; rates remain static

THE weekly Treasury bill auction went undersubscribed at the first phase for the third consecutive week, with only Rs. 4.695 billion of the Rs. 80 billion amount offered. This was despite total bids received exceeding the offered amount by 1.74 times.

- BY WEALTH TRUST SECURITIES

The weighted average yield rates remained unchanged across the board, after increasing for the first time in 20 weeks the preceding week. Accordingly, the weighted average rate on the 91-day tenor was recorded at 7.59%, the 182-day tenor at 7.91% and the 364-day tenor at 8.31%.

The 2nd phase of subscription for the auction will be opened for all three maturities at the weighted average rates until close of business of the day prior to settlement (i.e., 3.00 p.m. today).

Meanwhile, the secondary bond market initially saw yields continue to rise with a notable increase observed on tenors within the range of 2028-2029. However, a recovery was observed following the outcome of the Treasury bill auction which led to secondary market two-way quotes closing broadly steady.