On Wednesday, the State Bank of Pakistan (SBP) conducted a successful auction, selling Market Treasury Bills (MTBs) valued at Rs2.369 trillion for durations of 3, 6, and 12 months, surpassing its target of Rs2.25 trillion.
The cut-off yields for these MTBs were notably lower, with rates of 22.7898%, 22.8000%, and 22.9000% for 3, 6, and 12 months, respectively. This significant decrease in yields can be attributed to the SBP’s recent decision to maintain the policy rate at 22% during its latest Monetary Policy Committee (MPC) meeting.
The auction witnessed substantial participation, with bids totaling Rs4.577 trillion. The SBP accepted Rs2.369 trillion from this pool, comprising Rs2.14 trillion for 3 months, Rs0.18 billion for 6 months, and Rs1.5 billion for 12 months. Additionally, the SBP secured Rs224.77 billion from the non-competitive auction, bringing the total accepted amount to Rs2.369 trillion. In contrast, the cut-off yields in the previous auction were higher at 24.5%, 24.787%, and 25.0687% for 3, 6, and 12 months, respectively.
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