Govt Raises Rs. 640 Billion Via T-Bills

The cut-off yields on Treasury Bills (T-Bills) went up by up to 34 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. 640 billion against a target of Rs. 650 billion and maturity of Rs. 412 billion in the auction with the participation of Rs. 1,085 billion. Official data indicates that the cut-off yield for the 3-month T-Bills went up by 19 bps to 12.01 percent and up 34 bps to 12.38 percent for the 1-month paper. The cut-off yield for the 6-month T-Bills went up by 33 bps to 11.99 percent, while the cut-off yield for the 12-month T-Bills went up by 11 bps to 12.01 percent. The government raised Rs. 221 billion for the 1-month paper and Rs. 105 billion for the three-month paper in the competitive auction. It also raised Rs. 75 billion and Rs. 210 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. 30 billion through non-competitive bids. This took the total amount raised during the auction to Rs. 640 billion.