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Govt Raises Rs. 318.40 Billion Through Treasury Bill Auction

The government of Pakistan raised Rs. 318.40 billion on September 8 through the sale of market treasury bills, missing its target of Rs. 550 billion.

The central bank said it auctioned off Rs. 64.30 billion worth of three-month treasury bills, Rs. 253.10 billion of six-month paper, and Rs. 1 billion of 12-month bills.

The cut-off yield on three-month bills was 7.2347 percent, having changed little from a yield of 7.2300 percent in the previous auction held on August 25.

Meanwhile, the yield on the six-month treasury bills rose by 5 basis points to 7.4900 percent, and the yield on 12-month bills was at 7.6000 percent.

The government had rejected bids for 12-month bills during the previous auction.

The SBP is due to announce its latest monetary policy decision this month. While most analysts expect the bank to maintain interest rates as long as inflation stays within a moderate range of 7-9 percent, the ongoing depreciation in the value of the local currency and widening current account deficit has placed extra pressure on policymakers to raise rates.

In July, Pakistan logged a current account deficit of $773 million, as compared to a surplus of $583 million a year ago.

The Pakistani Rupee slid to its lowest since August 2020 this week, off the back of a spike in imports and political instability in neighboring Afghanistan.

Source: Pro Pakistani

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