T-Bills Auction: PKR 1,139 bn raised

June 17, 2021

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In Treasury Bills Auction held on Wednesday 16-June-2021, State Bank of Pakistan slightly decreased the cut-off yields on treasury bills (T-bills) and raised PKR 1,139.8 billion.

SBP fixed a cut-off yield of 7.59% on the benchmark six-month T-bills, marking no rise from last auction. A total of PKR 728bn was raised against six-month T-Bills. For 3 months T-Bills, the cut-off yield slightly declined by 2 bps to 7.33%. Total bids accepted for three months were PKR 410.9 billion.

SBP accepted bids of PKR 0.5 billion in 1-year tenor where cut off yield stood at 7.67%. The particiaption in the 1-Year paper remained low signifying market opinion that Interest Rates are bound to increase in six months period.

SBP received total bids of PKR 1,905 billion for the auction of T-bills while it accepted PKR 1,139.8 billion, including amount raised through non-competitive bids.

Despite the increase in inflation in May-2021 and higher expected inflation in upcoming months, cut-off yields have stabilized at current levels. The bidding pattern suggests ample liquidity in the banking system was behind stable yields.

T-Bill Tenor	Amount Offered PKR Billion	Amount Accepted PKR Billion	Cut-Off Yield %	Previous Cut-Off %
3-months	749	410.9	7.33%	7.35%
6-months	1,113	728.4	7.59%	7.59%
12-months	43.3	0.5	7.67%	7.67%