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LankaTalks
Apr 26 2026
71- Rs. 110 b worth of T-bills on offer sold
- Sales amid improved market sentiment driven by ceasefire developments
- Secondary market remains subdued
Surging demand at last week’s mid-week Treasury bill (T-bill) auction enabled the Public Debt Management Office (PDMO) to successfully sell the entire stock of Rs. 110 billion worth of T-bills on offer, amidst improved market sentiment driven by ceasefire developments in the Middle East.
Speaking to The Sunday Morning Business, First Capital Manager – Research Ranjan Ranatunga said that the stronger auction outcome was largely driven by positive developments related to the Middle East crisis.
“We are seeing encouraging news regarding the conflict, and that improved sentiment has had a positive impact on the primary market,” he said.
However, he noted that activity in the secondary market remained subdued, with little to no buying interest as investors adopted a ‘wait and see’ approach.
Ranatunga added that the improved auction performance was also supported by enhanced market liquidity and the significant upward adjustment in yields over the past four to five weeks.
During this period, the three-month T-bill yield increased by 66 basis points, the six-month yield by 32 basis points, and the 12-month by 29 basis points.
According to data released by the PDMO, bids totalling Rs. 265.5 billion were received at the T-bill auction held on Wednesday (22) for the Rs. 110 billion on offer.
At the auction, Rs. 45 billion was accepted out of Rs. 118.8 billion in bids received for three-month bills at a Weighted Average Yield Rate (WAYR) of 8.27%, marking an increase of 12 basis points from the previous auction.
Similarly, Rs. 15 billion was accepted out of Rs. 75 billion in bids for six-month bills at a WAYR of 8.23%, up by 1 basis point.
Meanwhile, Rs. 30 billion was accepted out of Rs. 71.5 billion in bids for 12-month bills at a WAYR of 8.52%, remaining constant when compared to the previous auction.
Source: The morning
