Karachi September 7 2022: On September 7, 2022, SBP raised PKR 817 billion through the auction of market treasury bills.
This is the first time in the history of Pakistan that the yield for 3M nears 16 percent against its previous high of 15.8 percent in previous auction.
Pakistan, CPI inflation General, increased by 27.3% on year-on-year basis in Aug 2022 which is a high of 47 years, as compared to an increase of 24.9 in the previous month and 8.4% in Aug 2021.
Monsoon rains have caused devastating floods in Pakistan, leaving millions homeless, destroying buildings, bridges and roads and leaving vast swathes of the country under water.
Pakistan, which was already reeling from dwindling currency reserves and inflation at the highest in decades, is now facing losses from a terrible natural disaster. More than a third of the country is under water and about half a million people have been forced into relief camps. With crops and livestock swept away, the government has warned of a looming food crisis.
The government received total bids worth PKR 1,290 billion and the highest bids of PKR 833 billion for 3 Month T-bills followed by PKR 260 billion for 12 Months and PKR 196 billion for 6 Months.
Cut-off yields increased by 21 and 4 basis points for 3M and 12M while for 6M it remained unchanged.
The cut-off yield for 3 Months, 6 Months, and 12 Months of paper settled at 15.9999 percent, 15.8497 percent, and 15.9790 percent, respectively.
The government raised PKR 817 billion in the latest auction against a target of PKR 1,000 billion. Out of this PKR 740 billion has been raised through 3M T-Bill.
