The cut-off yields on Market Treasury Bills (MTBs) were up by 96-130 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. 909.94 billion against an initial target of Rs. 1,000 billion and maturity of Rs. 1,117 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 96 bps to 11.451 percent from 10.489 percent observed on 23 February. Similarly, proceeds for the six-month paper increased by 121 bps to 12.100 percent, while yields on the 12-month paper soared by 130 bps to 12.295 percent from 10.999 percent recorded in the previous auction.

The government raised Rs. 511.14 billion against a targeted amount of Rs. 400 billion for the three-month paper in the competitive auction, and it raised Rs. 255.80 billion against a target of Rs. 400 billion for the six-month paper.

Moreover, it raised Rs. 143.00 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. 536.53 billion, Rs. 269.37 billion for the six-month paper, and Rs. 145.56 billion for the 12-month paper.

A further breakdown of the official numbers indicates that the government raised Rs. 909.94 billion from the competitive auction and Rs. 41.53 billion through non-competitive bids, which made total proceeds of Rs. 951.47 billion.

Source: Pro Pakistani