SBP raises Rs729bn through T-bills auction

January 26, 2022 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs729 billion, against its target of Rs650bn.

Despite SBP’s enough injection of Rs1.07 trillion during the two 63-day Open Market Operations (OMO), The cut-off yields for 3, 6 and 12 months saw a decline of 15, 68 and 57 basis points to stand at 10.30%, 10.69 and 10.93%, respectively.

However, the yields spread portray a change of 22, -2 and -3bps in 3, 6 and 12 months compared to today's secondary market yields which reflected the impact of the latest MPC's forward guidance regarding policy rate stability and high liquidity.

The total amount raised for 3 months T-bills was Rs489 billion, Rs130bn for 6-months, and Rs110bn for 12 months MTBs.

The total bids received was Rs2,259 billion. Out of the total bids, the majority of bids worth Rs980bn were received for 6 months, while Rs659bn and Rs620bn were received for 3 months and 12 months respectively.

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