Auction Result: Govt raises Rs452bn through T-bills

February 04, 2025 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Tuesday in which it sold Market Treasury Bills (MTBs) worth Rs451.92 billion.

The target was to raise Rs450 billion while the maturity amount was Rs426bn.

Cut off yields stood at 11.7998% (+21bps) for 3 months, 11.5048% (+10bps) for 6 months, and 11.5898% (+20bps) for 12 months.

Total amount offered was Rs917.51bn, with the SBP receiving bids worth Rs300.63bn for 3 months, Rs256.45bn for 6 months, and Rs360.43bn for 12 months.

Out of this, SBP accepted Rs153.19bn for 3 months, Rs27.95bn for 6 months, and Rs212.58bn for 12 months.

In addition, the central bank picked up Rs58.21bn from the non-competitive auction, making the total amount accepted Rs451.92bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, dropped to 2.03 as against 4.3 in the previous auction. In other words, the SBP accepted about 49.3% of the total bids it received.

To note, the central bank in the last auction held on January 22, 2025, sold MTBs worth Rs325.5bn against a target of Rs350bn.

Cut off yields stood at 11.5887% (-20bps) for 3 months, 11.4048% (-39bps) for 6 months, and 11.3898% (-41bps) for 12 months.

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