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

Ishara S. Kodikara | AFP | Getty Images Sri Lanka Prime Minister Ranil Wickremesinghe, center, speaks to supporters at the prime minister's official residence in Colombo on December 16, 2018, after he was reappointed as prime minister by Sri Lanka's president, the same man who fired him from the job nearly two months ago.

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.

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