Govt Raises Rs. 820 Billion Via T-Bills, Cut-Off Yields Down up to 140 BPS

The cut-off yields on Treasury Bills (T-Bills) went down by up to 140 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. 820 billion against a target of Rs. 400 billion and maturity of Rs. 893 billion in the auction with participation of Rs. 2,189 billion.  Official data indicates that the cut-off yield for the 3-month T-Bills went down by 140 bps to 13.8998 percent. The cut-off yield for the 6-month T-Bills went down by 84 bps to 13.5000 percent while the cut-off yield for the 12-month T-Bills declined by 64 bps to 13.0997 percent.  The government raised Rs. 133 billion for the three-month paper in the competitive auction. It also raised Rs. 106 billion and Rs. 460 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. 121 billion through non-competitive bids. This took the total amount raised during the auction to Rs. 820 billion.