KARACHI: The government has increased the cutoff yield on treasury bills (T-bills) for three and six months by 21 basis points in the auction held on Wednesday.

The government raised Rs691.3 billion through the auction of T-bills against its target of Rs900bn. The amount raised for the three-months T-bills was Rs503.1bn while Rs81.3bn was raised for the six-months. All bids for 12-months papers were rejected. An amount of Rs106.8bn was raised through non-competitive bids.

The cut-off yield on both three and six months T-bill were increased by 21 basis points to 7.84 per cent and 8.19pc, respectively. This was the second increase in the rate of T-bills since the increase in the policy rate by 25 basis points to 7.25pc.

Rs62.4bn raised through PIB auction: The government raised Rs62.4bn through the Pakistan Investment Bonds (PIB) auction on Wednesday. It sold PIBs for two-years for Rs46bn and Rs14bn for three-years. An amount of Rs2.4bn was raised through non-competitive bids.

Published in Dawn, October 7th, 2021