KARACHI: The State Bank of Pakistan (SBP) has reported that the government raised Rs323.4 billion through T-bills, against the auction target of Rs350 billion.
The SBP conducted the auction for the sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs) and received bids amounting to over Rs1,632 billion.
Bids worth Rs456.7 billion were received for 3-month T-bills, Rs355.7 billion for 6-month T-bills while 12-month government papers fetched bids amounting to Rs820.3 billion.
Out of the received bids, the federal government raised Rs128.6 billion from 3-month bids, Rs102.3 billion from 6-month T-bills and Rs92.5 billion from 12-month T-bills.
The total acceptance in the auction, including non-competitive bids, was Rs376.8 billion.
The cut-off yields for all bids decreased, with the cut-off yield for 3-month bids at 12.73pc down from 13.39pc.
The yield for 6-month bids was at 12.51pc, down from 13.34pc, and 12pc for 12-month bids, down from 13.33pc.
Just like previous auctions of MTBs, most of the bidding was concentrated in the short term 3-month T-bills. Previously, this bidding pattern had indicated possible anticipation of a policy rate cut.
Though the current interest rate has remained stubbornly at 13.25pc since July 16, 2019, there is a strong possibility that a rate cut may happen in the upcoming monetary policy announcement on March 17, based on global policy rate cuts.
The next auction date for T-bills is set for March 25, with a target amount of Rs450 billion.