July, 6, 2020
The latest data from the Central Bank of Sri Lanka points out that Foreigners had gradually exited from Sri Lanka’s Government Securities (Treasury Bills and Treasury Bonds) and pulled out over Rs. 5,133 million in a week, during the period from 24 June 2020 to 01 July 2020.
The value of Government Securities held by foreigners had fallen from Rs. 21,604 million to Rs. 16,471 million during the period from 24 June 2020 to 01 July 2020.
Further, the total outstanding stock of treasury bills has decreased from Rs.1,243,343 million to Rs.1,142,293 million ( Rs.101,050 million decrease) whilst the total outstanding stock of treasury bonds has increased from Rs.5,029,659 million to 5,089,659 million ( Rs. 60,000 million increase) during the period from 24 June 2020 to 01 July 2020. Accordingly, the short- term debt has recorded a decrease whilst the long- term debt has recorded an increase during this week.
Further, the Central Bank of Sri Lanka issued Rs.60,000 million worth treasury bonds during an auction held on 29 June 2020.
Meanwhile, Sri Lankan Treasury Bill yields fell across the board on July 1, 2020 auction. The three-month yield was down to 5.08% from 5.50%, the six-month yield was down to 5.22% from 5.53% and 12- month yield was down to 5.45% from 5.66%.
The Central Bank of Sri Lanka decided to accept Rs. 29,000 million from the auction.