Karachi: On Wednesday, the government successfully raised a total of Rs584.5 billion through the auction of Treasury Bills (T-Bills), Pakistan Investment Bonds (PIBs), and Government Islamic Sukuk (GIS). The breakdown of the amount raised is as follows: PKR 434 billion from T-Bills, PKR 11.9 billion from PIBs, and PKR 138 billion from the GIS auction across all tenors.
The Pakistan Stock Exchange (PSX) hosted a GIS auction, which saw impressive participation, with bids totaling PKR 536 billion—more than double the initial target of PKR 250 billion, according to AHL. Of the PKR 138 billion raised, the majority came from the 10-year Variable Rate Rental (VRR) Sukuk. Additionally, yields on Fixed Rate Rental (FRR) Sukuk experienced a slight decrease of 1 to 6 basis points compared to the previous auction.
In the T-Bill auction, the State Bank of Pakistan (SBP) raised PKR 434 billion, surpassing its target of PKR 250 billion. The yields for the 3-month, 6-month, and 12-month T-Bills dropped to multi-year lows, registering at 11.7848%, 11.7899%, and 11.8004%, respectively. These yields marked declines of 22 to 50 basis points, representing the lowest levels since early 2022. The total bids received for T-Bills amounted to PKR 1,552 billion, far exceeding the auction target.
Although the government raised PKR 434 billion in T-Bills, it fell short of the maturity amount of PKR 654 billion. The total participation in the T-Bill auction amounted to PKR 1,701 billion, demonstrating significant demand. The decline in yields, ranging from 21 to 50 basis points, further highlighted the strong investor interest.
Maaz Azam, Head of Research at Optimus Capital Management, commented on the auction results, stating, “The government has ample liquidity. The decision to raise more than the target but less than the maturity amount reflects the current liquidity position, as the Open Market Operations (OMO) has decreased, signaling less demand from the private sector.”
Meanwhile, the gold market saw an upward trend. Locally, the price of gold per tola increased by PKR 1,000, reaching PKR 277,000, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Internationally, gold prices climbed to USD 2,652 per ounce, including a USD 20 premium, reflecting a USD 10 increase during the day. Adnan Agar, Director of Interactive Commodities, noted, “Gold has made a low of USD 2,645 but is holding steady at USD 2,666,” linking the rise to reports that former US President Donald Trump might impose a national economic emergency if re-elected.
In the currency market, the rupee depreciated by 0.02% against the US dollar in the interbank market, closing at 278.72, down from 278.67 the previous day. Zafar Paracha, Secretary General of the Exchange Companies Association of Pakistan, remarked that the currency market remains stable with minor fluctuations of 5-10 paisa, reflecting normal supply and demand dynamics.
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