KARACHI: The government raised Rs780.5 billion through auction of market treasury bills and Pakistan Investment Bonds on Wednesday.
Rs653bn was borrowed through T-bills as against a target of Rs600bn while the maturing amount of treasuries was Rs790.8bn.
The highest amount of Rs519.3bn was raised for three months at a rate of 7.18 per cent while the bids for this tenor were Rs574bn. A significant chunk of investment into the shortest duration reflects the market perception regarding uncertainty about the current interest rate. Due to increased inflation, the key rate could see a change in next monetary policy.
Another Rs104.5bn was raised for 6-month instruments at 7.21pc against total bids of Rs145.5bn. Meanwhile, the smallest sum of Rs29bn came via 12-month bills at 7.29pc.
The government also raised Rs94bn through auction of Pakistan Investment Bonds while an additional Rs1.1bn came through non-competitive bids.
The target of PIBs for this auction was Rs140bn while the maturing amount was zero.
Published in Dawn, October 8th, 2020
Dear visitor, the comments section is undergoing an overhaul and will return soon.