Pakistan’s central bank sells PKR 716 billion worth of treasury bills

The State Bank of Pakistan (SBP) has raised PKR 716 billion ($2.5 billion) through its latest Treasury Bills (T-Bills) auction held on Wednesday.

This auction saw the six-month yields drop to their lowest level in 30 months.

The auction raised PKR 716bn against a maturing amount of PKR 1,038 billion and a target of PKR 400 billion.

The highest participation was observed in the 12-month tenor, which attracted PKR 268.6 billion. This was followed by the three-month tenor with PKR 232.6 billion and the six-month tenor with PKR 215 billion.

The cut-off yield for the three-month T-Bills was set at 15.2994%. Meanwhile, the six-month yield experienced a slight decline of 5 basis points, settling at 14.3430%, its lowest since April 2022. The yield for the 12-month tenor remained unchanged at 13.735%.

Analysts have noted that the yield curve continues to flatten, reflecting the market's robust demand for longer-tenor securities. This trend indicates investor confidence in the stability and potential returns of longer-term investments, despite the current economic challenges.