KARACHI: The government on Wednesday raised Rs853 billion less than the auction target of treasury bills but the cut-off yields were slightly reduced.

The State Bank of Pakistan (SBP) reported the cut-off yields for the three- and six-month T-bills were reduced by 2 and 1 basis points to 15.72pc and 15.74pc, respectively.

Sources in the market said there was no chance for change in returns on T-bills particularly when the SBP policy rate was kept unchanged at 15pc and the inflation for September was 23pc.

However, the yield on 12-month papers was kept unchanged at 15.75pc.

The auction target was Rs1,100bn and bids of Rs1,791bn were received, indicating higher liquidity available with banks to park in risk-free government papers.

Published in Dawn, October 20th, 2022