Sri Lanka’s Treasury Bill yields showed a upward trend at the weekly primary auction today with the one year yield increasing by eleven basis points to 8.33%.

The average weighted yield at the last auction was 8.22%.

The auction was oversubscribed with bids amounting to Rs. 32,108 million being received. The Central Bank of Sri Lanka decided to accept Rs. 15,000 million from the auction.

This is the first time that the Treasury bill auction has shown an upward trend after the Central Bank of Sri Lanka decided to reduce its policy interest rates by 50 basis points at its monetary board meeting on August 22 and this is the second Auction after the decision.

However, During the last week auction (28), Sri Lanka’s Treasury Bill yields showed a downward trend with the three month yield down from 7.84% to 7.63%, six month yield down from 7.89% to 7.70 and the one year yield down from 8.31% to 8.22%.