Karachi October 5 2023: On October 4 2023 the State Bank of Pakistan (SBP) raised a total of PKR 557 billion through the auction of market treasury bills with significant reduction in returns demanded by investors for longer tenure papers.
Cut-off yields drop for 3 Month and 12 Month papers while increased for 6 Month tenure. However, highest bids for 3 Month and 6 Month papers lowered by 301 basis points and 352 basis points compared to previous auction.
Majority of the acceptance remained in 3 Month tenure as investors continue to seek higher rates for treasury bills with 6-month and 12-month tenures.
The government received total bids worth PKR 2,815 billion and the highest bids of PKR 2,255 billion for 3 Month T-bills followed by PKR 443 billion for 12 Months and PKR 107 billion for 6 Months.
Cut-off yields decreased by 29 basis points for 3 Month T-Bills and 6 basis points for 12-Months while increased 5 basis point for 6 Month papers.
The cut-off yield for 3 Months, 6 Months and 12 Months paper settled at 22.502 percent, 22.85 and 22.84 percent, respectively.
Government raise an amount of PKR 471 billion in 3 Months followed by PKR 67 billion in 12 Months and PKR 18 billion in 6 Months. However, investors continue to seek higher rates for treasury bills with 6-month and 12-month tenures. Bids for the 6-month bills ranges up to 23.24 against 26.25 percent for previous auction, while upper bid for the 12-month bills declined by 352 basis points to 22.98 percent against 26.5 percent for previous auction.
The government raised PKR 557 billion in the latest auction against a target of PKR 600 billion
