T-bills yields fall by up to 49bps

May 15, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs639.52 billion for 3,6 and 12 months against a target of Rs450bn.

Cut off yields for 3, 6, and 12 months were 21.5973%, 21.2899%, and 20.4052%, depicting a fall of 6bps, 10bps, and 49bps respectively.

Total amount offered was Rs1.88tr out of which the SBP accepted Rs639.52bn.

The SBP received bids worth Rs312.4bn for 3 months, Rs438.55bn for 6 months, and Rs1.13tr for 12 months out of which it accepted Rs160.82bn for 3 months, Rs318.87bn for 6 months, and Rs77bn for 12 months.

In addition, the SBP picked up Rs82.83bn from the non-competitive auction, making the total amount accepted Rs639.52bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, dropped to 2.94 as against 3.52 in the previous auction. In other words, the SBP accepted about 33.99% of the total bids it received.

To note, the central bank in the last auction held on April 30, 2024 sold MTBs worth Rs253bn against a target of Rs300bn.

Cut-off yields for 3, 6, and 12 months were 21.6601%, 21.3874%, and 20.8989%.

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