The cut-off yields on Market Treasury Bills (MTBs) were up by 40-55 basis points (bps) in the auction of the paper held on Tuesday.
According to the data released by the State Bank of Pakistan (SBP), the government raised Rs. 597.97 billion against an initial target of Rs. 800 billion and maturity of Rs. 793 billion in the auction as a result of the central bank’s unchanged interest rate.
Official data indicates that the cut-off yields for the three-month T-Bills soared by 55 bps to 11.99 percent from 11.45 percent observed on 9 March. Similarly, proceeds for the six-month paper increased by 40 bps to 12.50 percent, while yields on the 12-month paper soared by 40 bps to 12.70 percent from 12.29 percent recorded in the previous auction.
The government raised Rs. 215 billion against a targeted amount of Rs. 300 billion for the three-month paper in the competitive auction, and it raised Rs. 214 billion against a target of Rs. 300 billion for the six-month paper.
Moreover, it raised Rs. 169 billion against a target of Rs. 200 billion through the 12-month bond during the auction.
The entire amount raised for the three-month paper was Rs. 283.28 billion, Rs. 235.40 billion for the six-month paper, and Rs. 174.80 billion for the 12-month paper.
A further breakdown of the official numbers indicates that the government raised Rs. 597.97 billion from the competitive auction and Rs. 95.52 billion through non-competitive bids, which made total proceeds of Rs. 693.49 billion.