KARACHI: The State Bank of Pakistan (SBP) has reported that the government raised Rs551.7 billion through T-bills, against the auction target of Rs500 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 Rs1,347 billion.
Bids worth Rs337.8 billion were received for 3-month T-bills, Rs209.5 billion for 6-month T-bills while 12-month government papers fetched bids amounting to Rs799.4 billion.
Out of the received bids, the federal government raised Rs242.2 billion for 3-months, Rs151.9 billion for 6-months and Rs157.5 billion for 12-months.
The total acceptance in the auction, including non-competitive bids, was Rs585.5 billion.
The cut-off yields for all bids decreased, with the cut-off yield for 3-month bids at 11.29pc, down from 12.73pc.
The yield for 6-month bids was at 11.29, down from 12.51pc, and 10.86pc for 12-month bids, down from 12pc.
This is the first T-bill auction that has taken place on the back of not one, but two policy rate cuts. The central bank cut the policy rate from 13.25pc to 12.5pc on March 17, and then from 12.5pc to 11pc on March 24.
Just like previous auctions of MTBs, most of the bidding was concentrated in the short term 3-month T-bills.
The next auction date for T-bills is set for April 8, with a target amount of Rs500 billion.