May 17, 2023 (MLN): The government on Wednesday raised Rs444 billion from the auction of Market Treasury Bills (MTBs), against a target of Rs375bn, result data published by the State Bank of Pakistan (SBP) showed.

The cut-off yield for 3-month and 12-month paper remained unchanged at 21.99% while the yield on 6-month paper edged lower by five basis points (bps) to 21.91%. 

An amount of Rs615bn was offered during the auction, out of which the SBP accepted Rs444bn. Of which, the SBP received bids worth Rs428.24bn for 3 months, Rs5.30bn for 6 months, and Rs10.93bn for 12 months.

The stability in the cut-off yields in 3 and 6-month bills is primarily attributed to the lower-than-expected hike in interest rate.

It is pertinent to mention that the market participants anticipated the hike of at least 200 bps to 22% whereas the Monetary Policy Committee (MPC) of the SBP in its meeting held on April 04, 2023, decided to raise the policy rate by only 100 bps to 21%.

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Posted on: 2023-05-17T22:16:35+05:00