The government raised cut-off yields by as much as 61 basis points across all tenors in its latest Treasury bills auction, reflecting the impact of the State Bank of Pakistan’s recent increase in the policy rate.
The auction attracted bids worth Rs4.867 trillion, significantly exceeding the amount the government intended to raise. The strong demand highlighted financial institutions’ preference for investing in risk-free government securities offering attractive returns, rather than extending loans to the private sector.
Against a target of Rs1.65 trillion, the government raised Rs1.913 trillion, while securities worth Rs1.195 trillion were due to mature. The total amount raised included Rs244.4 billion received through non-competitive bids.
Among the different maturities, the government secured the largest amount of Rs783.5 billion through three-month Treasury bills at a cut-off yield of 12.42 per cent.
It raised another Rs473 billion through one-month bills at 12.1pc, Rs169.5 billion through six-month bills at 12.65pc, and Rs242.7 billion through 12-month bills at 12.89pc.
