KARACHI: The State Bank of Pakistan (SBP) has reported that the government raised Rs458.8 billion through T-bills, against the auction target of Rs500 billion.
The SBP conducted the auction for the sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs) and received bids amounting to over Rs1,914 billion.
Bids worth Rs466.9 billion were received for 3-month T-bills, Rs586.9 billion for 6-month T-bills, while 12-month government papers fetched bids amounting to Rs860.2 billion.
Out of the received bids, the federal government raised Rs156 billion for 3-months, Rs142.9 billion for 6-months and Rs160 billion for 12-months. The total acceptance in the auction, including non-competitive bids, was Rs546.3 billion.
The cut-off yields for all bids decreased, with the cut-off yield for 3-month bids at 10.89pc, down from 11.29pc.
The yield for 6-month bids was at 10.3pc, down from 11.29, and 9.64pc for 12-month bids, down from 10.86pc.
This is the second T-bill auction to take place on the back of not one, but two policy rate cuts (the first took place on March 25). The central bank cut the policy rate from 13.25pc to 12.5pc on March 17, and then from 12.5pc to 11pc on March 24.
Unlike previous auctions of MTBs, the bidding was more concentrated in the long term 12 month papers, as opposed to the trend that defined most of last year and the beginning of this year, of investing in short term 3-month T-bills.
The next auction date for T-bills is set for April22, with a target amount of Rs500 billion.