Yield of three-month T-bills hiked by 25bps

The cut-off yields on three-month treasury bills (T-bills) were further increased by 25 basis points in the auction on Wednesday, leading to a 127-basis point increase since the last monetary policy announced in August, according to a report by Dawn.

The government had rejected the six-month T-bills in the previous auction. However, on Wedne­sday it accepted higher returns as it increased the cut-off yields by 31 basis points — the rate increased by 101 basis points since the last monetary policy.

The government raised Rs285 billion through the three and six-month T-bills and rejected all bids for 12-month papers. However, once the again the government remained much below its target set for this auction with Rs500bn.