SBP sells MTBs worth Rs283bn at lower yields

The State Bank of Pakistan (SBP) on Wednesday announced the auction result of Market Treasury Bills (MTBs) worth Rs 283.24 billion, far exceeding its target of Rs 100 billion. 

The auction saw a high demand for the short-term government securities, as the SBP received bids worth Rs2.755 trillion, nearly 10 times the amount it accepted.

The cut-off yields for the 3, 6, and 12-month MTBs were 20.9996%, 20.9601%, and 20.8449%, declining by 45, 44, and 59 basis points respectively.

The SBP accepted Rs5.71 billion for the 3-month MTBs, Rs6.5 million for the 6-month MTBs, and Rs211.08 billion for the 12-month MTBs. It also picked up Rs66.44 billion from the non-competitive auction, bringing the total amount accepted to Rs 283 billion.

In the previous auction, the SBP sold MTBs worth Rs2 trillion at 21.448%, 21.3999%, and 21.43% for the 3, 6, and 12-month tenors, exceeding its target by almost four times.