The cut-off yields on Treasury Bills (T-Bills) were up by 52-100 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. 506 billion against an initial target of Rs. 500 billion and maturity of Rs. 445 billion in the auction.

Official data indicates that the cut-off yields for the three-month T-Bills soared by 52 bps to 15.749 percent from 15.230 percent observed on June 29. Similarly, proceeds for the six-month paper increased by 100 bps to 15.800 percent from 14.800 percent, while yields on the 12-month paper soared by 99 bps to 15.939 percent from 14.949 percent recorded in the previous auction.

The government raised Rs. 356.33 billion against a targeted amount of Rs. 200 billion for the three-month paper in the competitive auction, and it raised Rs. 38.46 billion against a target of Rs. 150 billion for the six-month paper. Moreover, it raised Rs. 74 billion against a target of Rs. 150 billion through the 12-month bond during the auction.

A further breakdown of the official numbers indicates that the government also raised Rs. 37.32 billion through non-competitive bids, which took total proceeds to Rs. 506 billion.

Source: Pro Pakistan