Islamabad, Feb 19: The latest auction of Treasury Bills (T-Bills) saw an increase in cut-off yields by up to 17 basis points (bps), reflecting shifting market dynamics. Data from the State Bank of Pakistan (SBP) reveals that the government secured Rs. 259 billion against its target of Rs. 350 billion, with total participation reaching Rs. 737 billion.
In this auction, the cut-off yield for the 3-month T-Bills edged up by 2 bps, settling at 11.8247 percent. Meanwhile, the 6-month T-Bills witnessed the highest increase of 17 bps, reaching 11.6749 percent. The 12-month T-Bills also experienced an uptick of 6 bps, closing at 11.6498 percent. The government successfully raised Rs. 130.4 billion through the competitive sale of 3-month papers, while the 6-month and 12-month T-Bills garnered Rs. 14.4 billion and Rs. 70.1 billion, respectively.
Further analysis of the data highlights that an additional Rs. 44 billion was secured through non-competitive bids. This brought the total raised amount in the auction to Rs. 259 billion, indicating sustained investor interest despite the lower-than-targeted borrowing.
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The rise in yields suggests that investors are adjusting their expectations in response to macroeconomic conditions, inflationary trends, and monetary policy signals. The government’s ability to mobilize funds, even at higher yields, reflects ongoing liquidity dynamics and market sentiment toward fixed-income instruments. Analysts believe these trends will continue to influence upcoming auctions and the broader financial landscape.
Market participants are closely watching future T-Bill auctions for insights into interest rate movements and investor sentiment. The latest auction results provide a snapshot of the evolving economic environment, where both the government and investors are navigating interest rate shifts and liquidity conditions.
