KARACHI: The government on Wednesday increased the cut-off yields on all three tenors of treasury bills by up to 100 basis points jacking them above the policy rate and raised Rs506bn exceeding the auction target of Rs500bn.

In a bid to check the rising inflation, the State Bank of Pakistan (SBP) increased its policy rate by 125 basis points to 15 per cent on Thursday.

The central bank on Wednesday reported that the government increased the 6-month T-bills rate by 100 basis points to 15.80pc. This was the highest increase while the rate on the 12-month papers was increased by 99bps to 15.94pc.

The cut-off yield on the short-term three-month T-bills was increased by 52 basis points to 15.75pc to raise Rs356.3 billion in the auction. The government raised Rs38.5 and Rs74bn for six- and 12-month T-bills, respectively. The government raised Rs37.317bn through non-competitive bids. The local investors offered bids worth Rs1,574bn.

Published in Dawn, July 14th, 2022