SBP raises PKR 244bn at lowest interest rates since April 2022
All bids for three-month paper were rejected indicating the government's strategic shift towards longer-term debt instruments
The State Bank of Pakistan (SBP) has raised PKR 244 billion in the Treasury Bills (T-Bills) auction on Wednesday at cut-off yields lowest since April 2022.
The 6-month cut-off yield was set at 14.3980%, the lowest level since April 2022, and seven basis points lower than the secondary market yield of 14.47%.
Similarly, the 12-month cut-off yield was recorded at 13.7350%, also the lowest since April 2022, but 39 basis points higher than the 1-year secondary market rate of 13.34%.
All bids for three-month paper were rejected indicating the government's strategic shift towards longer-term debt instruments. In the last auction of September 18, SBP had rejected all bids and didn’t raise any money.
The auction witnessed robust participation, with total bids amounting to PKR 860 billion. The breakdown of bids included PKR 152.6 billion for the 3-month tenor, PKR 223.2 billion for the 6-month tenor, and PKR 484.5 billion for the 12-month tenor.
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