Karachi: The State Bank of Pakistan (SBP) has sold treasury bills (T-bills) of worth PKR 57.337 billion in the auction held yesterday against total bids of worth PKR 97.03 billion face value.
According to Alfalah Securities Limited, the SBP accepted PKR 41.914 billion, PKR 15.422 billion and PKR 1 million in 3M, 6M and 12M T-bills respectively. The cut-off yields in the 3M and 6M maturities witnessed a nominal increase of 5 bps to 11.87% and 11.94% against 11.82% and 11.89% respectively while the cut-off yield of 12M t-bills remained unchanged at 11.93%. The government has targeted to borrow PKR 575 billion in the 3QF12 through market Tbills to finance its budgetary expenses. Banks on the other hand have also shown great interest in lending to the government by investing in risk free government securities thus crowding out the private sector credit.