Karachi December 14 2022: On December 14, 2022, SBP raised PKR 1,665 billion through the auction of market treasury bills against target of PKR 1,350 Billion, according to information shared by the central bank.
In the previous T-bill auction government was able to raise less than 30 percent of what was targeted amount even at all time high rates. Even in this auction, majority of the amount raised in 3 Months paper as uncertainty rises after unexpected rate hike by Central Bank in the previous monetary policy to 23 high of 16 percent. SBP raised an amount of PKR 1,600 billion in 3 Months, PKR 46.54 billion in 6 Month and PKR 18.49 billion in 12 month paper, respectively
The government received total bids worth PKR 2,285 billion and the highest bids of PKR 1,716 billion for 3 Month T-bills followed by PKR 294 billion for 6 Months and PKR 275 billion for 12 Months.
The cut-off yield for 3 Months, 6 Months, and 12 Months of paper settled at 16.9999 percent, 16.8999 percent, and 16.800 percent, respectively.
The cut-off yields for 3 Months remained unchanged while increased for 6 Months by 10 basis points and 12 Months paper witnessed decrease of 4 basis points.
The government raised PKR 1,665 billion in the latest auction against a target of PKR 1,350 billion.
