CB opts again for higher amount in Bond auction; Bids soar, rates on the up

The Central Bank yet again opted to take up a higher amount as opposed to the offered value at this week’s Treasury Bond auction whilst yield continued to head north.

Wealth Trust Securities said the Bond auction this week amounted to Rs. 30 billion and bids received were overwhelmingly high at Rs. 126 billion or over four times more. Given the response and the yield, the Central Bank accepted bids to the value of Rs. 51.8 billion.

Fortnight ago, given the surge in Government’s cash requirement, the Central Bank accepted Rs. 10 billion on the 30-year Bond issue as opposed to the offered amount of Rs. 1 billion.

Referring to yesterday’s Bond auction, Wealth Trust Securities said continued buyers’ market saw the upward momentum in primary market rates continue as the overall yield curve sustained its upward trend. The weighted average on the market favourite seven-year maturity of 01.07.2022 was recorded at 9.17% while the two new issues of the 10-year and 20-year maturities of 15.03.2025 and 15.03.2035 recorded weighted averages of 10.09% and 11.20% respectively.

http://www.ft.lk/2015/03/11/cb-opts-again-for-higher-amount-in-bond-auction-bids-soar-rates-on-the-up/

Will high rates not bring foreign money in to the market ?

i think cb is in borrowing spree. after that things will be settled.
it will take little time to settle down.