SBP sells T-bills worth Rs2.4tr, yields fall by around 200bps

September 20, 2023 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs2.369 trillion for 3,6 and 12 months against a target of Rs2.25tr.

Cut-off yields for 3, 6, and 12 months were 22.7898%, 22.8000%, and 22.9000%, showing a decrease of 171bps, 199bps, and 217bps respectively.

This significant fall in yield is due to SBP's decision to maintain the policy rate at 22% in the latest MPC meeting.

Huge participation was seen in today's auction, with the total amount being offered worth Rs4.577tr, out of which the SBP accepted Rs2.369tr.

The SBP received bids worth Rs3.86tr for 3 months, Rs364bn for 6 months, and Rs358bn for 12 months out of which it accepted Rs2.14tr for 3 months, Rs0.18bn for 6 months, and Rs1.5bn for 12 months.

In addition, the SBP picked up Rs224.77bn from the non-competitive auction, making the total amount accepted Rs2.369tr.

To note, SBP in the last auction held on September 06 sold MTBs worth Rs1.332 trillion for 3, 6, and 12 months against a target of Rs1.95tr.

The Cut-off yields in the last auction for 3, 6, and 12 months were 24.5%, 24.787%, and 25.0687% respectively.

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