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