Government raises Rs716bn through T-bills auction, surpassing target
The State Bank of Pakistan announced that the government successfully raised Rs716 billion through the auction of treasury bills, exceeding the target of Rs400 billion. This amount was raised against a maturing amount of Rs1.04 trillion.
Despite expectations of a significant reduction in yields due to falling interest rates, the cut-off yields for the T-bills were only slightly reduced. The three-month and six-month tenor yields were slashed by five basis points to 15.29% and 14.34% respectively, the lowest since April 2022. The 12-month yield remained unchanged at 13.73%.
Notably, the highest amount of Rs268.6 billion was accepted for the 12-month tenor, followed by Rs232.6 billion for the three-month and Rs215 billion for the six-month tenors. The 12-month papers attracted the highest bids of Rs692.5 billion out of a total of Rs1.313 trillion.
Overall, the T-bills auction was a success, with the government raising a substantial amount to meet its financial obligations.
Published in Dawn, October 17th, 2024