Islamabad: The State Bank of Pakistan (SBP) on Wednesday (December 14) auctioned Treasury Bills (T-Bills) worth PKR 1,666 billion, news sources reported.
As per the sources, the T-Bills were oversubscribed and surpassed the set expected target of PKR 1,350 billion. The SBP received a total bid of PKR 2,286 billion, indicating the liquidity movement in the financial sector. However, the government accepted a lower total auctioned amount. As per the SBP documents, the bank has offered the following profit rate for the long-term and short-term bonds:
The 3-month cut-off yield was kept unchanged at 16.99%,
The 6-month cut-off yield was increased by 10 basis points to 16.88%
The 12-month cut-off yield was reduced by 4 basis points to 16.80%
As per the market sources, banks are investing in government papers for higher yields without risks, while private sector lending remains low.
It is important to note that the funds generated will be used to finance the government’s fiscal deficit and boost economic activities. This will also help in improving the country’s credit ratings in the face of the economic downturn in the market.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
