Govt raises Rs442bn through T-bills, yields fall by up to 18bps

July 10, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs441.76 billion.

The target was to raise Rs150bn while the maturity amount was Rs334bn.

Cut off yields stood at 20.0494% (-10bps) for 3 months, 19.7849% (-18bps) for 6 months, and 18.5400% (unchanged) for 12 months.

Total amount offered was Rs1.23tr, with the SBP receiving bids worth Rs268.3bn for 3 months, Rs754.28bn for 6 months, and Rs206.43bn for 12 months.

Out of this, SBP accepted Rs74.62bn for 3 months, Rs158.35bn for 6 months, and Rs121.4bn for 12 months.

In addition, the central bank picked up Rs87.39bn from the non-competitive auction, making the total amount accepted Rs441.76bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, rose to 2.78 as against 2.17 in the previous auction. In other words, the SBP accepted about 35.9% of the total bids it received.

To note, the central bank in the last auction held on June 26, 2024 sold MTBs worth Rs777bn against a target of Rs450bn.

Cut-off yields for 3, 6, and 12 months were 20.1498%, 19.964%, and 18.54%.

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