Karachi July 10 2024: On July 10, 2024, the State Bank of Pakistan (SBP) raised a total of PKR 442 billion through the auction of market treasury bills at significantly lower rates ahead of Monetary Policy Committee meeting scheduled later this month.
The cut-off yields are lowest since February 2023 due to signficant reduciton in inflation. Majority of the acceptance remained in 6 Month tenure as investors believe further monetary easing due to lower inflation trajectory.
“By managing supply and demand, the government aims to stabilize prices and mitigate market volatility, presenting a more optimistic inflation outlook” states ministry of Finance.
The government received total bids worth PKR 1,229 billion and the highest bids of PKR 754 billion for 6 Month T-bills followed by PKR 268 billion for 3 Months and PKR 206 billion for 12 Months.
Cut-off yields decreased by 10 basis points for 3 Month T-Bills and 18 basis points for 6-Months while remained unchanged for 12 Month papers.
The cut-off yield for 3 Months, 6 Months and 12 Months paper settled at 20.05 percent, 19.78 and 18.54 percent, respectively.
Government raised an amount of PKR 175 billion in 6 Months followed by PKR 139 billion in 12 Months and PKR 127 billion in 3 Months.
The government raised PKR 442 billion in the latest auction against a target of PKR 150 billion.
