October 7, 2021 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs691.3 billion for 3 and 6 months, against its target of Rs900bn.
The cut-off yields for 3 and 6 months were 7.638% and 7.97%, up by 21 bps
Total amount raised for 3 months T-bill was RS503.1bn and Rs81.3 for 6-months MTBs. Whereas, through non-competitive bids SBP picked up Rs107bn. In addition, all bids for the 12-month T-Bill were rejected.
Meanwhile, it is worth noting that this is the second increase in the rate of Treasury bills since the policy rate was raised 25 basis points to 7.25%.
In the PIB (Floating Rate) auction the SBP sold 2 and 3 years of PIBs worth Rs62.4bn. Through non-competitive bids, SBP picked up Rs2.4bn.
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