Karachi September 7 2023: On September 6, 2023, SBP raised PKR 1,332 billion, less than the targeted amount through the auction of market treasury bills despite offering record rates indicating market participants expectation of further monetary tightening by the central bank in its upcoming meeting.
Auction participants expect further monetary tightening due to current episode of rupee depreciation and power rate hikes. The current account numbers of negative USD 800 million in July and increase in dollar rate to 315 in open market amid increase in international oil prices reduce chances of relief in inflation numbers in the upcoming months.
The government received total bids worth PKR 1,974 billion.
Cut-off yields increased by 162 basis points for 3 Month T-Bills and 213 basis point for 12 Months from previous auction.
The cut-off yield for 3 Months, 6 Months and 12 Months paper settled at 24.499 percent, 24.787 percent and 25.068 percent, respectively.
Government raise an amount of PKR 1,256 billion in 3 Months, PKR 39 billion in 6 Months and PKR 37 billion in 12 Months, respectively.
The government raised PKR 1,331 billion in the latest auction against a target of PKR 1,950 billion.
