Govt raises Rs777bn through T-bills, yields fall by up to 41bps

June 26, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs776.7 billion.

The target was to raise Rs450bn while the maturity amount was Rs301bn.

Cut off yields stood at 20.1498% (unchanged) for 3 months, 19.9640% (-1bps) for 6 months, and 18.5400% (-41bps) for 12 months.

Total amount offered was Rs1.68tr, with the SBP receiving bids worth Rs236.71bn for 3 months, Rs997.21bn for 6 months, and Rs448.94bn for 12 months.

Out of this, SBP accepted Rs79.66bn for 3 months, Rs446.66bn for 6 months, and Rs200bn for 12 months.

In addition, the central bank picked up Rs50.39bn from the non-competitive auction, making the total amount accepted Rs776.7bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, rose to 2.17 as against 1.81 in the previous auction. In other words, the SBP accepted about 46.2% of the total bids it received.

To note, the central bank in the last auction held on June 12, 2024 sold MTBs worth Rs1.21 trillion against a target of Rs780bn.

Cut-off yields for 3, 6, and 12 months were 20.1498%, 19.9693%, and 18.9489%.

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