Business

Govt raises Rs452 billion through T-bill auction

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Digital Desk

1 year ago

ISLAMABAD: The State Bank of Pakistan (SBP) on Tuesday secured Rs452 billion in the latest auction of Market Treasury Bills (MTBs), surpassing the target of Rs450 billion.

The auction attracted Rs917.5 billion in total bids, with the SBP receiving bids worth Rs300.63 billion for 3 months, Rs256.45 billion for 6 months, and Rs360.43 billion for 12 months, the State Bank of Pakistan (SBP) data showed.

The three-month T-bill cut-off yield surged by 21bps to 11.79 percent.

Similarly, the cut-off yield for the six-month stood at 11.5048 percent with an increase of 10bps, while the 12-month yield climbed 24bps to 11.59 percent.

Out of this, SBP accepted Rs153.19bn for 3 months, Rs27.95 billion for 6 months, and Rs212.58 billion for 12 months.

Additionally, the central bank revealed that it collected Rs58.21 billion from the non-competitive auction, making the total amount accepted Rs451.92 billion.

To note, the central bank in the last auction held on January 22, 2025, sold MTBs worth Rs325.5bn against a target of Rs350bn.

Market analysts attributed the increase in yields to adjustments following the SBP’s smaller-than-expected rate reduction.

Meanwhile, Pakistan’s inflation dropped to 2.4 percent year-on-year in January, marking its lowest level in over nine years after recording 4.1 percent in December.

Digital Desk