In Treasury Bills Auction held on Wednesday 30-June-2021, the State Bank of Pakistan slightly decreased the cut-off yields on treasury bills (T-bills) and raised PKR 772.4 billion.
SBP fixed a cut-off yield of 7.5751% on the benchmark six-month T-bills, marking 1 bps decrease from last auction. A total of PKR 465bn was raised against six-month T-Bills. For 3 months T-Bills, the cut-off yield slightly declined by 2 bps to 7.3091%. Total bids accepted for three months were PKR 307.3 billion.
No bids were accepted in 1-year tenor where Rs. 50 billion participation was witnessed. The participation 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 1,329 billion for the auction of T-bills while it accepted PKR 772.4 billion, including the 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 | 475.8 | 307.3 | 7.3091% | 7.3259% |
| 6-months | 803.2 | 465 | 7.5751% | 7.5894% |
| 12-months | 50 | 0 | – | 7.67% |
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