T-bill returns stay above 11.5% policy rate at latest auction

Government T-bill rates today barely moved, with the Wednesday auction raising Rs685.5 billion as investors bid Rs2.6 trillion, mostly from banks.

The government kept T-bill rates almost unchanged at a Wednesday auction, and returns on all tenors stayed above the State Bank's 11.5% policy rate.

Total borrowing at the auction was Rs685.5 billion: Rs417.6 billion through competitive bids and Rs267.9 billion through non-competitive bids.

The six-month bill yield eased 6 basis points to 12.39%, which is 89 basis points above the policy rate.

Investor bids were Rs2.6 trillion, down from Rs2.7 trillion at the Oct 1 auction, with banks the main buyers.

The next monetary policy announcement is scheduled for Oct 26.

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