Sri Lanka’s Central Bank rejects all bids sent in for the three-year bond auction

Sri Lanka’s Central Bank on Tuesday rejected all bids sent in for the three-year bond auction today, but did not give any reason. Sri Lanka’s Central Bank on Tuesday rejected all bids sent in for the three-year bond auction today, but did not give any reason. The bank said it received offers worth Rs. 2.08 billion for the billion rupee issue, which carried a coupon rate of 11.5 percent.

Three-year paper currently trades at between 11.02-05 percent in the secondary market.

Market players said that the bank was expecting bids lower than 11 percent, which may have been the reason to call the auction off.

-LBO Newsdesk: lboemail@vanguardlk.com