Govt Raises Rs. 562 Billion Through Auction of Treasury Bills

The cut-off yields on Treasury Bills (T-Bills) went down by up to 17 basis points (bps) in the auction of the paper held on Wednesday. According to the data released by the State Bank of Pakistan (SBP), the government raised Rs. 562 billion against a target of Rs. 400 billion and maturity of Rs. 698 billion in the auction with participation of Rs. 1,505 billion. Official data indicates that the cut-off yield for the 3-month T-Bills remained unchanged at 12.0098 percent. The cut-off yield for the 6-month T-Bills went up by 1 bps to 11.9998 percent while the cut-off yield for the 12-month T-Bills remained unchanged at 12.0010 percent. The government raised Rs. 128 billion for the three-month paper in the competitive auction. It also raised Rs. 82 billion and Rs. 225 billion for the 6-month and 12-month T-Bills respectively. A further breakdown of the official numbers indicates that the government also raised Rs. 75 billion through non-competitive bids. This took the total amount raised during the auction to Rs. 562 billion.