The cut-off yields on Market Treasury Bills (MTBs) were up by 12-23 basis points (bps) in the auction of the paper on Wednesday.
According to the data released by the State Bank of Pakistan (SBP), the government raised Rs. 366.8 billion against an initial target of Rs. 800 billion in yesterday’s auction as a result of the central bank’s unchanged interest rate.
Official data indicates that the cut-off yields for the three-month MTB soared by 19 basis points to 10.489 percent from 10.299 percent observed on 9 February. Similarly, proceeds for the six-month paper increased by 23 basis points to 10.890 percent, while yields on the 12-month paper soared by 12 basis points to 10.999 percent from 10.879 percent recorded in the previous auction.
The government raised Rs. 235 billion against a targeted amount of Rs. 300 billion for the three-month paper in the competitive auction, and it raised Rs. 69 billion against a target of Rs. 300 billion for the six-month paper.
Moreover, it raised Rs. 31 billion against a target of Rs. 200 billion through the 12-month bond during yesterday’s auction.
The entire amount raised for the three-month paper was Rs. 255.23 billion, Rs. 77.81 billion for the six-month paper, and Rs. 33.75 billion for the 12-month paper.
A further breakdown of the official numbers indicates that the government raised Rs. 334.41 billion from the competitive auction and Rs. 32.39 billion through non-competitive bids, which made total proceeds of Rs. 366.8 billion.
