Govt raises Rs355bn through T-bills, yields fall around 50bps

August 07, 2024 (MLN):The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs355 billion.

The target was to raise Rs210bn while the maturity amount was Rs205bn.

Cut off yields stood at 18.9748% (-52bps) for 3 months, 18.7501% (-54bps) for 6 months, and 17.7393% (-50bps) for 12 months.

Toward the end of July, SBP lowered its key policy rate by another 100 basis points to 19.5%. The reduction was the second in a row, bringing the total decrease since June 2024 to 250bps.

In today's auction, the total amount offered was Rs1.78tr, with the SBP receiving bids worth Rs349.56bn for 3 months, Rs692.24bn for 6 months, and Rs736.54bn for 12 months.

Out of this, SBP accepted Rs39bn for 3 months, Rs87bn for 6 months, and Rs133.6bn for 12 months.

In addition, the central bank picked up Rs95.07bn from the non-competitive auction, making the total amount accepted Rs354.67bn.

To note, the central bank in the last auction held on July 24, 2024 sold MTBs worth Rs481bn against a target of Rs150bn.

Cut-off yields for 3, 6, and 12 months were 19.4899%, 19.2891%, and 18.2389%.

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