SBP sells T-bills worth Rs527bn, yields drop by up to 30bps

March 06, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs526.98 billion for 3,6 and 12 months against a target of Rs225bn.

Cut off yields for 3, 6, and 12 months were 21.4002%, 20.3949%, and 20.2998%.

The yields for 3-month and 12-month MTBs experienced a decrease of 30 basis points (bps) and 3 bps, respectively. The yield for 6-month MTBs, however, remained unchanged.

Total amount offered was Rs1.354tr out of which the SBP accepted Rs526.98bn.

The SBP received bids worth Rs652.03bn for 3 months, Rs72.2bn for 6 months, and Rs630.15bn for 12 months out of which it accepted Rs168.66bn for 3 months, Rs1.5bn for 6 months, and Rs301.33bn for 12 months.

In addition, the SBP picked up Rs55.49bn from the non-competitive auction, making the total amount accepted Rs526.98bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, dropped to 2.57 as against 3.75 in the previous auction. In other words, the SBP accepted about 38.91% of the total bids it received.

To note, the central bank in the last auction held on February 21, 2024 sold MTBs worth Rs361bn against a target of Rs300bn.

Cut-off yields for 3, 6, and 12 months were 21.6998%, 20.3952%, and 20.329%.

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