T-Bill rates drop at auction for first time in 5 week

Secondary Bond market consolidates, activity remains robust

- By WEALTH TRUST SECURITIES

AT the weekly Treasury Bill auction held yesterday, weighted average yields declined across all maturities following four consecutive weeks of increases prior.

The weighted average yield on the 91-day bill fell by 2 basis points to 7.93%, while the 182-day bill recorded a sharper decline of 8 basis points to 8.36% The 364-day bill also eased marginally by 1 basis point to 8.47%.

Despite being marginally undersubscribed, the auction demonstrated strong investor appetite, with total bids reaching 2.81 times the offered volume.

The Public Debt Management Office successfully raised Rs. 112.48 billion, equivalent to 89.99% of the Rs. 125 billion on offer, with the full acceptance of amounts offered in both the 91-day and 182-day maturities underscoring strong demand at the short end.