T-bill yields remain largely stable

September 04, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs835.23 billion.

The target was to raise Rs700bn while the maturity amount was Rs385bn.

Cut off yields remained largely stable across all tenors. It stood at 17.4799% (-1bps) for 3 months, 17.7399% (unchanged) for 6 months, and 16.9989% (unchanged) for 12 months.

Total amount offered was Rs1.62tr, with the SBP receiving bids worth Rs350.72bn for 3 months, Rs391.56bn for 6 months, and Rs875.69bn for 12 months.

Out of this, SBP accepted Rs78.91bn for 3 months, Rs234bn for 6 months, and Rs441.92bn for 12 months.

In addition, the central bank picked up Rs80.4bn from the non-competitive auction, making the total amount accepted Rs835.23bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, dropped to 1.94 as against 3.04 in the previous auction. In other words, the SBP accepted about 51.6% of the total bids it received.

To note, the central bank in the last auction held on August 21, 2024 sold MTBs worth Rs397bn against a target of Rs150bn.

Cut-off yields for 3, 6, and 12 months were 17.4902%, 17.7449%, and 16.9999%.

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