SBP sells Rs493.3bln MTBs

KARACHI: The State Bank of Pakistan (SBP) sold Rs493.3 billion worth of Market Treasury Bills (MTB) at an auction on Wednesday, with yields declined across the board.

The raised amount was lower than the pre-auction target of Rs600 billion.

The cut-off yield on three-month Treasury Bills fell to 13.2981 percent from 13.6898 percent in the previous auction held on October 9. The SBP sold Rs135.1 billion worth of shortest-tenor government paper.

The cut-off yield on 12-month MTBs stood at 12.7900 percent, sharply down from 13.4699 percent. The SBP sold Rs186.3 billion worth of 12-month MTBs.

The consumer price index inflation rose to 11.4 percent in September from 10.5 percent in August.

Most analysts expect the central bank’s Monetary Policy Committee to likely hold the policy rate in its next policy review meeting. However, some believe the interest rates might go down next year.