T-bills yields plunge up to 148bps

August 21, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs396.8 billion while slashing the yields by up to 148 basis points.

The target was to raise Rs150bn while the maturity amount was Rs184bn.

Cut off yields were reduced to 17.4902% (-148bps) for 3 months, 17.7449% (-101bps) for 6 months, and 16.9999% (-74bps) for 12 months.

Total amount offered was Rs1.21 trillion, with the SBP receiving bids worth Rs278.72bn for 3 months, Rs403.26bn for 6 months, and Rs524.32bn for 12 months.

Out of this, SBP accepted Rs52.01bn for 3 months, Rs144.05bn for 6 months, and Rs125.12bn for 12 months.

In addition, the central bank picked up Rs75.62bn from the non-competitive auction, making the total amount accepted Rs396.8bn.

The bid-to-cover ratio, which shows the amount of bids received versus the amount sold, dropped to 3.04 as against 5.01 in the previous auction. In other words, the SBP accepted about 32.9% of the total bids it received.

To note, the central bank in the last auction held on August 07, 2024 sold MTBs worth Rs355bn against a target of Rs210bn.

Cut-off yields for 3, 6, and 12 months were 18.9748%, 18.7501%, and 17.7393%.

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