Cut-Off Yield on T-Bills Down Up to 15 BPS

The cut-off yields on Treasury Bills (T-Bills) were down by 2-15 basis points (bps) in the auction of the paper on Wednesday. According to the data released by the State Bank of Pakistan (SBP), the government raised Rs. 1.74 trillion against an initial target of Rs. 800 billion and maturity of Rs. 791 billion in the auction. Official data indicates that the cut-off yields for the three-month T-Bills fell by 2 bps to 15.230 percent from 15.250 percent observed on June 15. Similarly, proceeds for the six-month paper fell by 15 bps to 14.8001 percent from 14.9501 percent observed on June 15, while yields on the 12-month paper remained unchanged. The government raised Rs. 1,710 billion against a targeted amount of Rs. 200 billion for the three-month paper in the competitive auction, however, it did not borrow any amount for the six-month paper. Moreover, it raised Rs. 5 billion against a target of Rs. 300 billion through the 12-month bond during the auction. A further breakdown of the official numbers indicates that the government also raised Rs. 27 billion through non-competitive bids, which took total proceeds to Rs. 1,742 billion.