Govt raises Rs575bn through T-bills auction

The government on Wednesday raised Rs575.3 billion through the auction of treasury bills (T-bills). The rate was slightly changed from the previous auction held on May 5.

As per a report compiled by Dawn, the cut-off yield of six-months T-bills increased by 5 basis points to 7.60pc. The government raised highest amount of Rs325.5bn through the auction of six-month T-bills. The bids for the same paper were also highest at Rs552.5bn.

The government raised Rs179.8bn for the three-months T-bills at 7.34pc. The rate was unchanged from the last auction of May 5. The bids for this paper were Rs453.9bn.

The lowest amount was raised for 12-month papers at a rate of 7.68pc. The bids for this paper were also lowest — signifying that long term investment could face a challenge if the interest rate is increased during this period. The government raised Rs21.6bn for this tenor.

The government also raised Rs48.4bn through non-competitive bids making the total selling of T-bills at Rs575.3bn.