The cut-off yields on Treasury Bills (T-Bills) were up by 60-80 basis points (bps) in the auction of the paper held on Wednesday.
According to the data released by the State Bank of Pakistan (SBP), the government raised Rs. 645 billion against an initial target of Rs. 600 billion and maturity of Rs. 674 billion in the auction as a result of the central bank’s unchanged interest rate.
Official data indicates that the cut-off yields for the three-month T-Bills soared by 80 bps to 12.80 percent from 11.99 percent observed on 22 March. Similarly, proceeds for the six-month paper increased by 75 bps to 13.25 percent, while yields on the 12-month paper soared by 60 bps to 13.29 percent from 12.70 percent recorded in the previous auction.
The government raised Rs. 373 billion against a targeted amount of Rs. 200 billion for the three-month paper in the competitive auction, and it raised Rs. 148 billion against a target of Rs. 200 billion for the six-month paper.
Moreover, it raised Rs. 123 billion against a target of Rs. 200 billion through the 12-month bond during the auction.
The entire amount raised for the three-month paper was Rs. 394 billion, Rs. 156 billion for the six-month paper, and Rs. 129 billion for the 12-month paper.
A further breakdown of the official numbers indicates that the government raised Rs. 645 billion from the competitive auction and Rs. 35 billion through non-competitive bids, which made total proceeds of Rs. 680 billion.
