Karachi August 23 2023: On August 23, 2023, SBP raised PKR 2,074 billion, less than the targeted amount through the auction of market treasury bills at slightly lower rates from record offering.
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.
“We expect rate hike of 100 basis points from current levels in upcoming monetary policy meeting” says Chief Financial Officer of MCB Bank while speaking earlier in the day with investors.
The government received total bids worth PKR 3,249 billion and the highest bids of PKR 2,505 billion for 3 Month T-bills followed by PKR 375 billion for 12 Months and PKR 370 billion for 6 Months.
Cut-off yields decreased by 2 basis points for 3 Month T-Bills and 4 basis point for 12 Month papers, while reject bids for 6 Month.
The cut-off yield for 3 Months and 12 Months paper settled at 22.8803 percent and 22.9400 percent, respectively.
Government raise an amount of PKR 2,063 billion in 3 Months and PKR 11 billion in 12 Months.
The government raised PKR 2,074 billion in the latest auction against a target of PKR 2,250 billion.
