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

ComBank MD S. Renganathan (Centre) introducing the app to CB Governor Indrajit Coomaraswamy in the presence of (from L) ComBank Manager - Card Centre Seevali Wickramasinghe, Head of Card Centre Thusitha Suraweera, Deputy GM – Marketing Hasrath Munasinghe, CB Assistant Governor Ananda Jayalath and CB Director - Payments & Settlements Dharmasri Kumaratunge

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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