Sri Lanka’s Public Debt Management Office (PDMO) has successfully placed an additional 14 billion rupees of Treasury bills on tap, bringing the total volume sold this week to 100 billion rupees.
The extra issuance was offered at average rates of 9.86 percent, 10.21 percent, and 10.20 percent across the respective tenors, according to data from the debt office.
The tap sale follows a Wednesday auction where yields on Sri Lankan T-bills rose across all maturities, despite the PDMO managing to place the entire 70 billion rupee offering.
The tap sale follows a Wednesday auction where yields on Sri Lankan T-bills rose across all maturities, despite the PDMO managing to place the entire 70 billion rupee offering.
The consistent upward pressure on yields indicates that investors are demanding higher compensation for short-term risk, even as the government continues to meet its liquidity needs without leaving paper unsold.
This development underscores the persistent funding challenges facing Colombo’s debt management strategy.
While the central bank has maintained stability in the primary market, the rising cost of short-term borrowing reflects broader concerns about fiscal consolidation and external sector pressures.