The federal government raised Rs. 2.068 trillion in the latest Market Treasury Bills (MTBs) auction as borrowing rates across all tenors effectively fell below the benchmark interest rate.
The benchmark lending rate is currently 11.5 percent.
The government accepted Rs. 2,067.9 billion against a target of Rs. 2.4 trillion. The auction saw an across-the-board decline in cut-off yields, which fell between 31 and 40.3 basis points compared with the previous auction.
The sharpest decline came in the one-month Treasury Bill, where the cut-off yield dropped 40.3 basis points to 11.3968 percent.
The three-month yield fell 35.2 basis points to 11.3978 percent, while the six-month and 12-month yields eased to 11.4375 percent and 11.4880 percent, down 31 basis points and 35 basis points, respectively.
The government relied heavily on longer-term borrowing, raising Rs. 1.088 trillion through 12-month T-Bills. This accounted for more than half of the total amount accepted. It also raised Rs. 485.3 billion through six-month papers, Rs. 396.5 billion via three-month bills, and Rs. 98.4 billion through one-month securities.
Of the total amount raised, Rs. 1.063 trillion came from competitive bids, while Rs. 1.004 trillion was accepted through non-competitive bids.
Weighted average yields also declined across the board, with one-month, three-month, six-month, and 12-month papers settling at 11.3917 percent, 11.3716 percent, 11.3904 percent, and 11.3731 percent, respectively.
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