Govt raises Rs1.57tr in T-bill auction

LAHORE: The Treasury Bills (T-Bills) cut-off yields rose by 120 basis points in the paper auction held on Wednesday, according to data released by the State Bank of Pakistan (SBP). The government’s initial target of Rs. 1.8 trillion was not met, as it raised Rs. 1.57 trillion in the auction. The three-month T-Bills cut-off yields rose by 105 bps to 20.99 percent, the six-month paper’s cut-off yields increased by 95 bps to 20.84 percent, and the 12-month paper yields went up by 120 bps to 20.98 percent.

The government raised Rs. 1,505.4 billion from the three-month paper and Rs. 0.3 billion from the six-month paper, exceeding its targeted amount. However, it raised only Rs. 2 billion from the 12-month bond against a target of Rs. 600 billion.

During the auction, the government raised a total of Rs. 1,564 billion for the three-month paper, Rs. 2.5 billion for the six-month paper, and Rs. 3.4 billion for the 12-month paper. Furthermore, it raised Rs. 1,507.7 billion from the competitive auction and Rs. 62.3 billion through non-competitive bids, totaling proceeds of Rs. 1,570 billion.

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