The cut-off yields on Treasury Bills (T-Bills) were up by 55-70 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. 568 billion against an initial target of Rs. 600 billion and maturity of Rs. 541 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 70 bps to 13.50 percent from 12.80 percent observed on 7 April. Similarly, proceeds for the six-month paper increased by 60 bps to 13.84 percent, while yields on the 12-month paper soared by 55 bps to 13.84 percent from 13.29 percent recorded in the previous auction.
The government raised Rs. 291 billion against a targeted amount of Rs. 200 billion for the three-month paper in the competitive auction, and it raised Rs. 166 billion against a target of Rs. 200 billion for the six-month paper.
Moreover, it raised Rs. 111 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. 320 billion, Rs. 174 billion for the six-month paper, and Rs. 118 billion for the 12-month paper.
A further breakdown of the official numbers indicates that the government raised Rs. 568 billion from the competitive auction and Rs. 45 billion through non-competitive bids, which made total proceeds of Rs. 613 billion.
