ISLAMABAD: In a recent auction on Wednesday, the State Bank of Pakistan (SBP) successfully issued Market Treasury Bills (MTBs) totaling Rs819.87 billion, achieving the lowest yields since early 2022. The central bank aimed to raise Rs400 billion, with a maturity amount of Rs893 billion.
The cut-off yields saw substantial reductions: 13.8998% for 3-month bills (down 140 basis points), 13.5000% for 6-month bills (down 84 basis points), and 13.0997% for 12-month bills (down 64 basis points).
The total bids received reached Rs2.19 trillion, with specific interest of Rs712.01 billion for 3-month, Rs392.36 billion for 6-month, and a remarkable Rs1.08 trillion for 12-month bills. The SBP accepted Rs132.61 billion for 3 months, Rs105.91 billion for 6 months, and Rs459.91 billion for 12 months. Additionally, the bank garnered Rs121.44 billion from a non-competitive auction, bringing the total accepted amount to Rs819.87 billion.
For context, in the previous auction on October 16, 2024, the SBP sold MTBs worth Rs716 billion, targeting Rs400 billion, with higher yields of 15.2994% for 3 months, 14.343% for 6 months, and 13.735% for 12 months.
