Govt Raises Rs. 1,256 Billion Via T-Bills, Cut-Off Yields Down up to 100 BPS

The cut-off yields on Treasury Bills (T-Bills) went down by up to 100 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. 1256 billion against a target of Rs. 1,200 billion and maturity of Rs. 2,043 billion in the auction with participation of Rs. 1,929 billion. Official data indicates that the cut-off yield for the 3-month T-Bills went down by 100 bps to 11.9999 percent. The cut-off yield for the 6-month T-Bills went down by 89 bps to 11.9999 percent while the cut-off yield for the 12-month T-Bills declined by 5 bps to 12.2999 percent. The government raised Rs. 322 billion for the three-month paper in the competitive auction. It also raised Rs. 106 billion and Rs. 666 billion for the 6-month and 12-month T-Bills respectively. A further breakdown of the official numbers indicates that the government also raised Rs. 163 billion through non-competitive bids. This took the total amount raised during the auction to Rs. 1,256 billion.