KARACHI: The State Bank of Pakistan (SBP) has reported that the governmentraised Rs633.57 billion through T-bills, against the target of Rs500billion.
The SBP conducted the auction for the sale of 3-month, 6-month and 12-monthGovernment of Pakistan Market Treasury Bills (MTBs) and received bidsamounting to over Rs1.2 trillion.
Bids worth Rs949.75 billion were received for 3-month T-bills, Rs61.96billion for 6-month T-bills while 12-month government papers fetched bidsamounting to Rs172.36 billion.
Out of the received bids, the federal government raised Rs472.13 billionfrom 3-month bids, Rs19.5 billion from 6-month T-bills and Rs98.7 billionfrom 12-month T-bills.
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The cut-off yield for 3-month bids was 13.429 percent, whereas for 6-monthbids, it was at 13.289 percent and 13.134 percent for 12-month. As perusual, most of the bidding was concentrated in the short term 3-monthT-bills.
While this may reflect anticipation of a policy rate cut, the currentinterest rate has remained stubbornly at 13.25pc since July 16, 2019.Tuesday’s monetary policy announcement maintained the status quo.
