SBP sells T-bills worth Rs704.38bn, yields rise by up to 60bps

March 20, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs704.38 billion for 3,6 and 12 months against a target of Rs340bn.

Cut off yields for 3, 6, and 12 months were 21.6601%, 20.3944%, and 20.8998%, depicting a rise of 26bps and 60bps in 3 month and 12 month, while the yields for 6 month remained stable.

Total amount offered was Rs992bn out of which the SBP accepted Rs704.38bn.

The SBP received bids worth Rs740.15bn for 3 months, Rs82.8bn for 6 months, and Rs169.45bn for 12 months out of which it accepted Rs541.47bn for 3 months, Rs5.3bn for 6 months, and Rs102.45bn for 12 months.

In addition, the SBP picked up Rs55.16bn from the non-competitive auction, making the total amount accepted Rs704.38bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, dropped to 1.41 as against 2.57 in the previous auction. In other words, the SBP accepted about 70.98% of the total bids it received.

To note, the central bank in the last auction held on March 06, 2024 sold MTBs worth Rs527bn against a target of Rs225bn.

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

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