Auction Result: SBP sells T-bills worth Rs557.6bn

April 03, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs557.63 billion for 3,6 and 12 months against a target of Rs225bn.

Cut off yields for 3, 6, and 12 months were 21.6601%, 21.3999%, and 20.8998%, depicting a rise of 101bps in 6 month, while 3-month and 12-month yields remained unchanged.

Total amount offered was Rs994bn out of which the SBP accepted Rs557.63bn.

The SBP received bids worth Rs424.17bn for 3 months, Rs194.75bn for 6 months, and Rs375.42bn for 12 months out of which it accepted Rs160.12bn for 3 months, Rs143bn for 6 months, and Rs210.51bn for 12 months.

In addition, the SBP picked up Rs44bn from the non-competitive auction, making the total amount accepted Rs557.63bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, rose to 1.78 as against 1.41 in the previous auction. In other words, the SBP accepted about 56.08% of the total bids it received.

To note, the central bank in the last auction held on March 20, 2024 sold MTBs worth Rs704bn against a target of Rs340bn.

Cut-off yields for 3, 6, and 12 months were 21.6601%, 20.3944%, and 20.8998%.

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