In Treasury Bills Auction held on Wednesday 19-May-2021, State Bank of Pakistan slightly increased the cut-off yields on treasury bills (T-bills) and raised PKR 575.3 billion.
SBP fixed a cut-off yield of 7.60% on the benchmark six-month T-bills, marking a rise of 5 basis points from last auction. A total of PKR 325.5bn was raised against six-month T-Bills. For 3 months T-Bills, the cut-off yield remained unchanged at 7.35%. Total bids accepted for three months were PKR 179.8 billion.
SBP accepted bids of PKR 21.6 billion in 1-year tenor where cut off yield stood at 7.68%.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 1,028 billion for the auction of T-bills while it accepted PKR 575.3 billion, including PKR 48.4bn raised through non-competitive bids.
Despite the increase in inflation in April-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 as outflows on the occasion of Eid are coming back to the banks.
Latest posts by News Desk (see all)
- Oil Prices down amid Geo-Political Uncertainty - November 1, 2023
- Govt to borrow PKR8.5 trillion in Bond Auction till Jan-2024 - November 1, 2023
- Nishat Chunian Ltd: 1QFY24 profit rises 13 percent to PKR 500mn - October 31, 2023