Auction Result: Govt raises Rs434.2bn through T-bills

January 08, 2025 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs434.15 billion.

The target was to raise Rs250 billion while the maturity amount was Rs654bn.

Cut off yields stood at 11.7848% (-22bps) for 3 months, 11.7899% (-21bps) for 6 months, and 11.8004% (-50bps) for 12 months.

Total amount offered was Rs1.7tr, with the SBP receiving bids worth Rs231.25bn for 3 months, Rs269.25bn for 6 months, and Rs1.2tr for 12 months.

Out of this, SBP accepted Rs74.92bn for 3 months, Rs83.8bn for 6 months, and Rs171.45bn for 12 months.

In addition, the central bank picked up Rs103.98bn from the non-competitive auction, making the total amount accepted Rs434.15bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, rose to 3.92 as against 3.04 in the previous auction. In other words, the SBP accepted about 25.5% of the total bids it received.

To note, the central bank in the last auction held on November 24, 2024, sold MTBs worth R913.14bn against a target of Rs1.2 trillion.

Cut off yields stood at 11.9999% for 3 months, 11.9949% for 6 months, and 12.2977% for 12 months.

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