KARACHI: The government of Pakistan on Wednesday raised around Rs1.66 trillion through auction of treasury bills for deficit financing and repayment of maturity.
The government raised through the auction of market treasury bills conducted by the State Bank of Pakistan (SBP).
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Analysts at Topline said that in today’s key Treasury bill auction ahead of December closing, Pakistan government raised Rs1.7 trillion as against a huge maturity of Rs1.9 trillion and target of Rs1.35 trillion.
Cut-off yield in the three months remain unchanged while up by 10 basis points in six months and down 4 basis points in 12 months.
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The auction witnessed huge participation from the banks as total amount stood at Rs2.3 trillion where participation was skewed towards 3-month treasury bills.
“This indicates that money market participants are still eyeing a possibility of interest rate hike going forward and are reluctant to take exposure in longer tenor,” according to the analysts.
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To recall, in the last auction of the treasury bills held on November 30, 2022, the government just raised Rs215 billion as against participation of Rs646 billion where the maturity was Rs855 billion and target was Rs850 billion fearing increase in yields.
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