The cut-off yields on Treasury Bills (T-Bills) were down by up to 2 basis points (bps) in the auction of the paper held on Wednesday.
According to the data released by the State Bank of Pakistan (SBP), the government raised Rs. 853 billion against an initial target of Rs. 1.1 trillion and maturity of Rs. 1.063 trillion in the auction.
Official data indicates that the cut-off yields for the three-month T-Bills slid by 2 bps to 15.7198 percent from 15.7398 percent observed on October 5. Similarly, the proceeds for the six-month paper dropped by 1 bps to 15.7434 percent, while yields on the 12-month paper remained unchanged.
The government raised Rs. 623 billion against a targeted amount of Rs. 350 billion for the three-month paper in the competitive auction, and it raised Rs. 42 billion against a target of Rs. 375 billion for the six-month paper. Moreover, it raised Rs. 188 billion against a target of Rs. 375 billion through the 12-month bond during the auction.
A further breakdown of the official numbers indicates that the government also raised Rs. 87 billion through non-competitive bids, while Rs. 766 billion was raised through competitive bids. This took the total amount raised during the auction to Rs. 853 billion.
Source: Pro Pakistan