November 01, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs1.148 trillion for 3,6 and 12 months against a target of Rs975bn.
Cut-off yields for 3, 6, and 12 months were 21.9495%, 21.9898%, and 21.9999%.
This means that the cut-off yields for 3, 6, and 12 months fell by 25bps, 41bps, and 40bps respectively.
The total amount offered was Rs4.183tr out of which the SBP accepted Rs1.148tr.
The SBP received bids worth Rs1.09tr for 3 months, Rs632.46bn for 6 months, and Rs2.47tr for 12 months out of which it accepted Rs127.1bn for 3 months, Rs47.27bn for 6 months, and Rs747.9bn for 12 months.
It is worth mentioning that the SBP has received the highest ever bids for the 12-months MTBs, surpassing last auction's all-time high of Rs2.16tr.
This suggests that market participants continue to strongly price in the peak of interest rates.
In addition, the SBP picked up Rs226.02bn from the non-competitive auction, making the total amount accepted Rs1.148.
To note, the central bank in the last auction held on October 18 sold MTBs worth Rs1.09tr against a target of Rs900bn.
Cut-off yields for 3, 6, and 12 months were 22.2000%, 22.3999%, and 22.4000%.
