Sri Lanka Treasury Bill yields decline at weekly auction

The Public Debt Management Office (PDMO) successfully raised its full initial offer of LKR 120 billion during a weekly Treasury Bill auction on August 24. The auction included LKR 50 billion in 3-month bills and LKR 35 billion each for 6-month and 12-month bills.

Weighted average yields saw a decline across the board, particularly in short-term tenors. The 3-month and 6-month yields both fell by 16 basis points to 9.06% and 9.44% respectively, while the 12-month yield decreased by 2 basis points to 9.89%. This downward trend in short-term yields suggests potentially lower near-term government borrowing costs.