October 18, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs1.092 trillion for 3,6 and 12 months against a target of Rs900bn.
Cut-off yields for 3, 6, and 12 months were 22.2000%, 22.3999%, and 22.4000%.
This means the the cut-off yields for 3, 6, and 12 months fell by 30bps, 45bps, and 44bps respectively.
The total amount offered was Rs4.266tr out of which the SBP accepted Rs1.092tr.
The highest-ever participation was seen in the 1-year T-Bills, with the SBP receiving bids worth Rs 2.155tr out of which SBP accepted Rs882bn.
This suggests that market participants believe the interest rates have peaked out.
While SBP received bids worth Rs1.69tr for 3 months, and Rs426bn for 6 months out of which it accepted Rs39bn for 3 months, and Rs12bn for 6 months.
In addition, the SBP picked up Rs159bn from the non-competitive auction, making the total amount accepted Rs1.092tr.
To note, SBP in the last auction held on October 04 sold MTBs worth Rs557.39bn against a target of Rs600bn.
Cut off yields for 3, 6, and 12 months were 22.5002%, 22.8500%, and 22.8400%.
