State Bank of Pakistan raised Rs 633 billion against target of Rs 500 billion through T - Bills Auction
KARACHI: The State Bank of Pakistan (SBP) has reported that the government raised Rs633.57 billion through T-bills, against the target of Rs500 billion.
The SBP conducted the auction for the sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs) and received bids amounting to over Rs1.2 trillion.
Bids worth Rs949.75 billion were received for 3-month T-bills, Rs61.96 billion for 6-month T-bills while 12-month government papers fetched bids amounting to Rs172.36 billion.
Out of the received bids, the federal government raised Rs472.13 billion from 3-month bids, Rs19.5 billion from 6-month T-bills and Rs98.7 billion from 12-month T-bills.
The cut-off yield for 3-month bids was 13.429 percent, whereas for 6-month bids, it was at 13.289 percent and 13.134 percent for 12-month. As per usual, most of the bidding was concentrated in the short term 3-month T-bills.
While this may reflect anticipation of a policy rate cut, the current interest rate has remained stubbornly at 13.25pc since July 16, 2019. Tuesday’s monetary policy announcement maintained the status quo.