Govt raises Rs1.52tr through T-bills auction

Published March 25, 2021
The government on Wednesday raised over Rs1.519 trillion through auction of market treasury bills, but most of the amount was borrowed for the three-month tenure. — AFP/File
The government on Wednesday raised over Rs1.519 trillion through auction of market treasury bills, but most of the amount was borrowed for the three-month tenure. — AFP/File

KARACHI: The government on Wednesday raised over Rs1.519 trillion through auction of market treasury bills, but most of the amount was borrowed for the three-month tenure.

The government received the highest bids of Rs1,538 billion for three-month T-bills and accepted Rs1,130.68bn. The cut-off yield on this paper was reduced by 5 basis points to 7.53 per cent compared to 7.58pc in the previous auction held on March 10, the State Bank of Pakistan reported.

The cut-off yield on benchmark six-month T-bills remained unchanged at 7.8pc while the government raised Rs388.9bn. The bids for this tenure were Rs468.08bn.

All bids (Rs62.8bn) for 12-month were rejected. The total bids for T-bills for this auction were Rs2,042.929bn while the government accepted Rs1,519.582bn.

The auction trend shows that the banks were over-liquid as they were willing to park maximum liquidity in government papers. At the same time, both the government and the investors were on the same page for the short-term three-month T-bill. The investors were cautious over the interest rate that may change upward in the coming months depending upon the intensity of inflationary pressures.

PIBs auction

The government accepted Rs1.150bn for two-year PIBs and rejected all bids for three-year. Total bids for the auction of PIBs were Rs5.95bn. The government also raised Rs2.2bn through PIBs as non-competitive bids.

Published in Dawn, March 25th, 2021

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

The Peca problem
Updated 15 Feb, 2025

The Peca problem

The fight for fundamental freedoms is not the media’s alone, but one that concerns every citizen.
Miners in danger
15 Feb, 2025

Miners in danger

YESTERDAY’S devastating terrorist attack in Harnai, which killed at least 11 coal miners and injured seven others,...
Solar panels scam
15 Feb, 2025

Solar panels scam

THE scam involving over-invoicing to the tune of more than Rs69bn in the import of solar panels raises many ...
Dangerous times
Updated 14 Feb, 2025

Dangerous times

Pakistan accounted for six journalist killings in 2024, of which three were deliberately murdered, according to the CPJ.
Difficult target
14 Feb, 2025

Difficult target

A ONE-two punch delivered by an unforeseen, sharp dip in inflation and an extremely slim base of taxpayers is...
Amazing show
14 Feb, 2025

Amazing show

PAKISTAN’S ability to turn it up at the flick of a switch remains uninhibited. The latest show came in...