Cut-Off Yield on T-Bills Soars by 70 BPS

In the paper's auction on Wednesday, the cut-off yields on Treasury Bills (T-Bills) increased by 55-70 basis points (bps).

As a consequence of the central bank's unaltered interest rate, the government raised Rs. 568 billion in the auction, versus an initial aim of Rs. 600 billion and maturity of Rs. 541 billion, according to statistics issued by the State Bank of Pakistan (SBP).

According to official statistics, the cut-off yields for three-month T-Bills increased by 70 basis points to 13.50 percent, up from 12.80 percent on April 7. Similarly, six-month paper proceeds jumped by 60 basis points to 13.84 percent, while 12-month paper yields increased by 55 basis points to 13.84 percent, up from 13.29 percent at the previous auction.

In the competitive auction, the government raised Rs. 291 billion against a target of Rs. 200 billion for the three-month paper and Rs. 166 billion against a target of Rs. 200 billion for the six-month note.

Moreover, the 12-month bond generated Rs. 111 billion against a goal of Rs. 200 billion during the auction.

The three-month paper raised Rs. 320 billion, the six-month paper raised Rs. 174 billion, and the 12-month paper raised Rs. 118 billion.

According to the official data, the government raised Rs. 568 billion from the competitive auction and Rs. 45 billion from non-competitive bids, for a total of Rs. 613 billion in profits.