SBP sells T-bills worth Rs441.76 billion, exceeding auction target

WEB DESK: The State Bank of Pakistan (SBP) conducted an auction on Wednesday, successfully selling Market Treasury Bills (MTBs) worth Rs441.76 billion.

The initial target for the auction was set at Rs150 billion, with the maturity amount standing at Rs334 billion.

The cut-off yields for the MTBs were adjusted slightly, with the three-month bills at 20.0494 per cent (a decrease of 10 basis points), six-month bills at 19.7849 per cent (a decrease of 18 basis points), and the twelve-month bills remaining unchanged at 18.5400 per cent.

A total of Rs1.23 trillion was offered, with bids amounting to Rs268.3 billion for the three-month bills, Rs754.28 billion for the six-month bills, and Rs206.43 billion for the twelve-month bills.

Of these, the SBP accepted Rs74.62 billion for the three-month bills, Rs158.35 billion for the six-month bills, and Rs121.4 billion for the twelve-month bills. Additionally, the central bank secured Rs87.39 billion from the non-competitive auction, bringing the total accepted amount to Rs441.76 billion.

The bid-to-cover ratio, an indicator of demand versus supply, increased to 2.78 from 2.17 in the previous auction. This means that the SBP accepted approximately 35.9 per cent of the total bids received.

In the previous auction held on 26th June 2024, the SBP sold MTBs worth Rs777 billion against a target of Rs450 billion. The cut-off yields for those bills were 20.1498 per cent for the three-month bills, 19.964 per cent for the six-month bills, and 18.54 per cent for the twelve-month bills.

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