The cut-off yields on Treasury Bills (T-Bills) were up by 55-75 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. 757 billion against an initial target of Rs. 750 billion and maturity of Rs. 651 billion in the auction.
Official data indicates that the cut-off yields for the three-month T-Bills soared by 75 bps to 15.249 percent from 14.49 percent observed on May 18. Similarly, proceeds for the six-month paper increased by 55 bps to 15.249 percent, while yields on the 12-month paper soared by 75 bps to 15.50 percent from 14.75 percent recorded in the previous auction.
The government raised Rs. 551 billion against a targeted amount of Rs. 250 billion for the three-month paper in the competitive auction, and it raised Rs. 91 billion against a target of Rs. 250 billion for the six-month paper. Moreover, it raised Rs. 115 billion against a target of Rs. 250 billion through the 12-month bond during the auction.
A further breakdown of the official numbers indicates that the government also raised Rs. 34.87 billion through non-competitive bids, which took total proceeds to Rs. 792 billion.
