Govt raises Rs680b via T-bills

According to The Express Tribune, the government raised Rs680 billion through Wednesday's Market Treasury Bill auction, missing its Rs800 billion target despite Rs2.77 trillion in bids from banks and investors. The State Bank of Pakistan accepted bills across four maturities, with the weighted average yield landing at 11.60%. Demand leaned heavily toward shorter papers, while longer maturities attracted limited interest.

Yields did not move in one direction across the tenors. The one-month bill cleared at 11.39%, eight basis points under the previous auction, while the three-month paper eased five basis points to 11.60%. Yield on the six-month paper edged up 10 basis points, reaching 11.90%, and the 12-month rate held steady at 11.99%.

Shorter bills drew strong interest, as the one-month target of Rs100 billion was exceeded with Rs124 billion accepted from Rs1.17 trillion in bids. Six-month and 12-month papers fell short, with the SBP taking Rs121 billion against a Rs200 billion target and Rs48 billion against Rs300 billion. Separately, the rupee closed at 277.45 per dollar, while 24-karat gold ended at Rs454,036 per tola after dropping Rs11,300.