SBP sells T-bills worth Rs27.5 billion

KARACHI: The State Bank of Pakistan (SBP) sold treasury bills worth Rs27.5 billion in an auction on Wednesday, with yields remained flat on all tenors.

The raised amount was highly lower than the pre-auction target of Rs100 billion. It showed decline in the government’s borrowing from banks. Though within the government securities, treasury bills remained more attractive instrument, commercial banks offered low amount in T-bills post-monetary policy announcement by the central bank for the September-October period. 

The yield on Pakistan’s six-month benchmark treasury held steady at 5.9046 percent. The central bank sold Rs725.636 million worth of six-month paper.

The cutoff yield on 12-month paper remained unchanged at 5.9046 percent from the previous auction held on September 9. The State Bank sold Rs9.56 billion long-term paper.  The cutoff yield for a three-month treasury bill stayed flat at 5.8571 percent, while the SBP sold Rs17.28 billion worth of shortest-tenor government paper.