April 20, 2023 (MLN): The government on Wednesday raised Rs599 billion from the auction of Market Treasury Bills (MTBs), against a target of Rs1 trillion, result data published by the State Bank of Pakistan (SBP) showed.
The cut-off yield for the 3-month and the 6-month paper remained unchanged at 21.99% and 21.97%, respectively.
The yield on 10-month paper edged higher by ten basis points (bps) to 21.99%.
The total amount offered was Rs1.04tr out of which the SBP accepted Rs599bn. Of which, the SBP received bids worth Rs510.86tr for 3 months, Rs23.52bn for 6 months, and Rs64.92bn 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%.
