Govt slashes yields on treasury bills by over 300bps

October 02, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs244.45 billion at lowest yields since early 2022.

The target was to raise Rs250bn while the maturity amount was Rs341bn.

The cut-off yields compared to September 04  auction fell 334bps to 14.3980% for 6 months, and 326bps to 13.7350% for 12 months. Bids were rejected for the 3 month papers.

To note, the central bank in the last auction held on September 18 rejected all bids for the MTBs. Meanwhile, in a historic move, the SBP conducted an auction for the buyback of MTBs last week in which it repurchased Rs351bn.

Total amount offered was Rs874.91bn, with the SBP receiving bids worth Rs167.15bn for 3 months, Rs223.24bn for 6 months, and Rs484.52bn for 12 months.

Out of this, SBP accepted Rs60.34bn for 6 months, Rs120.27bn for 12 months, while bids were rejected for 3 month papers.

In addition, the central bank picked up Rs63.84bn from the non-competitive auction, making the total amount accepted Rs244.45bn.

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