Karachi October 31 2024: On October 30, 2024, the State Bank of Pakistan (SBP) raised a total of PKR 820 billion through the auction of market treasury bills at significantly lower rates ahead of Monetary Policy Committee meeting scheduled earlier next month.
Majority of the acceptance remained in 12 Month tenure as investors believe monetary easing to continue due to declining inflation in the country.
Inflation in Pakistan is expected to ease to 6 to 7 percent for October 2024 due to improvement in domestic supply chain of perishable food items and drop in wheat prices, according to Ministry of Finance.
The government received total bids worth PKR 2,189 billion and the highest bids of PKR 1,084 billion for 12 Month T-bills followed by PKR 712 billion for 3 Months and PKR 392 billion for 6 Months.
Cut-off yields decreased by 140 basis points for 3 Month T-Bills, 84 basis points for 6-Months and 64 basis point for 12 Month papers.
The cut-off yield for 3 Months, 6 Months and 12 Months paper settled at 13.9 percent, 13.5 and 13.1 percent, respectively.
Government raise an amount of PKR 504 billion in 12 Months followed by PKR 174 billion in 3 Months and PKR 142 billion in 6 Months.
The government raised PKR 820 billion in the latest auction against a target of PKR 400 billion.
