SBP raises nearly Rs2tr through MTB auction

The State Bank of Pakistan accepted government Market Treasury Bills worth Rs1,913.25bn at face value in its October 28 auction, Mettis Global reported. The amount included Rs1,668.84bn in competitive bids and Rs244.40bn in non-competitive bids, against total offers of Rs4,867.93bn across four maturities.

Three-month bills drew the largest acceptance, at Rs879.08bn, while the one-month, six-month and 12-month tenors raised Rs540.97bn, Rs232.4bn and Rs260.8bn respectively. Cut-off yields increased from the October 14 auction for every tenor: the one-month rate reached 12.1055%, the three-month 12.4261%, the six-month 12.6500% and the 12-month 12.8900%.

The auction results also showed the strongest bid volume in the three-month category, with Rs2,005.94bn offered. Provincial governments accounted for Rs80.00bn of accepted non-competitive bids, including Rs30.00bn each in three-month and six-month bills.