KARACHI: On Wednesday, the government generated Rs704 billion through the sale of Treasury bills, more than doubling the goal.
The rate for the benchmark six-month bills remained constant while the cut-off rates on the Treasury notes climbed for the long-term 12-month and short-term 3-month papers.
For the three-month tenor, the State Bank raised Rs541.5 billion at 21.66 percent, a 26 basis point rise. For the six-month term, the SBP raised Rs5.3bn at a rate of 20.39 percent. But even though Rs102.5bn was raised for this paper, the cut-off yield for the 12-month tenor increased by 60 basis points to 20.89pc.
Investors placed a total of Rs992.4 billion in bids for the auction.
Following the March 18 announcement of the monetary policy, a rise in Treasury notes was introduced. The State Bank stated that there was still a chance of substantial inflation, which forced the bank to be cautious and keep the rate at 22 percent, contrary to what the market had anticipated.
