KARACHI: The State Bank of Pakistan (SBP) Wednesday reported that the government had raised Rs391.3 billion through T-bills, against the auction target of Rs400 billion.
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 Rs674.1 billion.
Bids worth Rs273 billion were received for 3-month T-bills, Rs235.7 billion for 6-month T-bills, while 12-month government papers fetched bids amounting to Rs166 billion.
Out of the received bids, the federal government raised Rs136.8 billion for 3-months, Rs148.5 billion for 6-months and Rs106 billion for 12-months.
The total acceptance in the auction, including non-competitive bids, was Rs418.3 billion.
The cut-off yield for 3-month bids and 6-month bids were consistent with the previous auction, at 8.38pc and 7.99pc respectively. The cut-off yield for 12-month bids however, rose from 7.47pc to 7.75pc.
This is the second T-bill auction to take place after not one, but three policy rate cuts. The central bank cut the policy rate from 13.25pc to 12.5pc on March 17, from 12.5pc to 11pc on March 24, and finally from 11pc to 9pc on April 16.
The next auction date for T-bills is set for May 20, with a target amount of Rs300 billion.
