Govt raises PKR 1.9tn via T-bill auction

The government raised Rs1.902 trillion (realised value) from the auction of market treasury bills on Wednesday, while yields were mixed ahead of the central bank’s monetary policy meeting next week.

The one-month T-bill cut-off yield fell 4 basis points to 12.1892 per cent. The yield on the three-month paper increased one basis point to 12.4988 per cent. The six-month T-bill yield was down 1 basis point to 12.4999 per cent. The 12-month T-bill yield increased 40 basis points to 12.9895 per cent.

The government raised Rs1.962 trillion (face value) from the T-bill auction against the target of Rs2 trillion, with a maturity of Rs1.835 trillion. The participation in the auction was Rs4.63 trillion.The government rejected bids for the Pakistan Investment Bonds (floaters) in a separate auction.

The State Bank of Pakistan will announce its monetary policy decision on Monday.Markets and analysts are split wide over the future path of interest rates, driven by volatile energy prices amid Middle East tensions. Some expect further rate hikes, while others anticipate no change in rates at the central bank’s next week’s policy review. The SBP raised its key interest rate by 100 basis points to 11.5 per cent in April.

Source: The International News Pakistan