Karachi May 29 2024: On May 29, 2024, the State Bank of Pakistan (SBP) raised a total of PKR 501 billion through the auction of market treasury bills at significantly lower rates ahead of Monetary Policy Committee meeting scheduled earlier next month.
Majority of the acceptance remained in 12 Month tenure as investors believe monetary easing to start soon due to lower inflation trajectory.
Inflation in Pakistan is expected to ease to 13.5 to 14.5 percent for May 2024 due to improvement in domestic supply chain of perishable food items and drop in wheat prices, according to Ministry of Finance.
The government received total bids worth PKR 1,185 billion and the highest bids of PKR 539 billion for 12 Month T-bills followed by PKR 391 billion for 3 Months and PKR 255 billion for 6 Months.
Cut-off yields decreased by 60 basis points for 3 Month T-Bills, 29 basis points for 6-Months and 31 basis point for 12 Month papers.
The cut-off yield for 3 Months, 6 Months and 12 Months paper settled at 21.0001 percent, 20.0000 and 20.1001 percent, respectively.
Government raise an amount of PKR 233 billion in 12 Months followed by PKR 166 billion in 3 Months and PKR 102 billion in 6 Months.
The government raised PKR 501 billion in the latest auction against a target of PKR 360 billion.
