T-bill yields cut by up to 140bps

October 30, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs819.87 billion at lowest yields since early 2022.

The target was to raise Rs400bn while the maturity amount was Rs893bn.

Cut off yields fell to 13.8998% (-140bps) for 3 months, 13.5000% (-84bps) for 6 months, and 13.0997% (-64bps) for 12 months.

Total amount offered was Rs2.19tr, with the SBP receiving bids worth Rs712.01bn for 3 months, Rs392.36bn for 6 months, and Rs1.08tr for 12 months.

Out of this, SBP accepted Rs132.61bn for 3 months, Rs105.91bn for 6 months, and Rs459.91bn for 12 months.

In addition, the central bank picked up Rs121.44bn from the non-competitive auction, making the total amount accepted Rs819.87bn.

To note, the central bank in the last auction held on October 16, 2024 sold MTBs worth Rs716bn against a target of Rs400bn.

Cut-off yields for 3, 6, and 12 months were 15.2994%, 14.343%, and 13.735%.

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