Benchmark T-bills yields fall by 26bps

KARACHI: The cutoff yields on the benchmark six-month market treasury bills (MTBs) has declined by 26 basis points to 8.9892 percent, raising the hopes for a significant rate cut in the monetary policy scheduled to be announced on January 24.
The State Bank of Pakistan (SBP) conducted an auction on Wednesday, realising Rs37.491 billion against the six-month paper at a cutoff yield of 8.9892 percent. In the last market treasury bills auction held on January 7, the six-month paper had offered the yields at 9.2523 percent.
The government of Pakistan has raised Rs156.505 billion through the auction of market treasury bills (MTBs) on Wednesday.
The government raised Rs37.491 billion against the six-month paper at a cutoff yield of 8.9892 percent, while an amount of Rs412.726 million was raised against three-month paper at a cutoff yield of 8.9583 percent.
The market evinced interest in long-term one-year paper, as the SBP accepted bids worth Rs118.601 billion at a cutoff yield of 8.8619 percent.