Three-Month T-Bill Cut-Off Yield Falls by 30 bps to 22.2% in Auction

In a recent auction of Treasury Bills (T-Bills) in Pakistan, the government achieved impressive results. The cut-off yields for these T-Bills, which represent the interest rates at which the government borrows money, experienced significant decreases. The 3-month T-Bill cut-off yield dropped by 30 basis points to 22.2%, the 6-month T-Bill yield decreased by 45 basis points to 22.4%, and the 12-month T-Bill yield saw a drop of 44 basis points to 22.4%.

The government not only met but exceeded its target by raising a substantial amount. Against a target of Rs. 900 billion, they managed to raise Rs. 1.092 trillion, showcasing strong investor interest and confidence in the country’s financial stability. In the competitive auction, the government raised Rs. 39 billion for the three-month T-Bill, Rs. 12 billion for the six-month T-Bill, and an impressive Rs. 882 billion for the 12-month T-Bill.

Additionally, through non-competitive bids, the government raised an additional Rs. 159 billion, bringing the total funds generated during the auction to Rs. 1.092 trillion. This remarkable success in the T-Bill auction indicates that investors are willing to lend money to the Pakistani government at lower interest rates, which can be a positive sign for the country’s economy. It also suggests that the government has strong financial support and is well-positioned to meet its funding needs, which is crucial for executing various projects and initiatives for the betterment of the nation.

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