Auction Result: Govt raises Rs640bn through T-bills

March 26, 2025 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs639.77 billion.

The target was to raise Rs650 billion while the maturity amount was Rs412bn.

Cut off yields stood at 12.38% (+35bps) for one month, 12.01% (+19bps) for 3 months, 11.99% (+33bps) for 6 months, and 12.01% (+11bps) for 12 months.

The rise in cut-off yields across all tenors indicated investors' reaction to IMF's emphasis on maintaining a tight monetary policy. The market appears to be aligning with this stance as investors expect interest rates to remain elevated in the near term.t interest rates will remain elevated in the near term.

Total amount offered was Rs1.08tr, with the SBP receiving bids worth Rs254.67bn for 3 months, Rs187.5bn for 6 months, and Rs374.73bn for 12 months.

Out of this, SBP accepted Rs104.67bn for 3 months, Rs75bn for 6 months, and Rs209.73bn for 12 months.

In addition, the central bank picked up Rs29.82bn from the non-competitive auction, making the total amount accepted Rs639.77bn.

The bid-to-cover ratio, which shows the number of bids received versus the amount sold, dropped to 1.7 as against 4.02 in the previous auction. In other words, the SBP accepted about 59.0% of the total bids it received.

To note, the central bank in the last auction held on March 19, 2025, sold MTBs worth Rs392.17bn against a target of Rs800bn while the maturity amount was Rs513bn.

The target was to raise Rs800bn, while the maturity amount was Rs513bn.

Cut-off yields stood at 12.04% for one month, 11.8242% for 3 months, 11.6699% for 6 months, and 11.8999% for 12 months.

Copyright Mettis Link News