The State Bank of Pakistan (SBP) successfully raised Rs 397 billion in its T-bill auction on Wednesday, significantly surpassing the initial target of Rs 150 billion. The auction saw notable declines in cut-off yields across all tenors, reflecting strong investor interest and anticipation of future rate cuts.
The 3-month T-bill cut-off rate saw the largest drop, decreasing by 148 basis points to 17.49 percent. The 6-month tenor followed with a 101 basis point reduction, bringing the rate down to 17.74 percent. The 12-month cut-off rate also experienced a decline, falling by 74 basis points to 16.9999 percent.
Investor participation in the auction was robust, with total bids amounting to Rs 1.2 trillion, particularly concentrated in the 6-month tenor. Analysts suggest that this surge in participation indicates investors’ eagerness to lock in attractive yields ahead of expected rate cuts by the central bank.
The strong results of the auction reflect investor confidence and the ongoing adjustments in Pakistan’s monetary policy landscape.