Pakistan’s central bank raised PKR 326 billion in a T-Bill auction on Wednesday, with yields declining by 20-45 basis points. The auction saw participation of PKR 1.401 trillion, though the government’s target was PKR 350 billion against a maturity of PKR 515 billion.
Current yields stand at 11.58% for the three-month T-Bill, 11.40% for the six-month T-Bill, and 11.34% for the 12-month paper.
It may be mentioned here that since June the interest rates have declined by 900 basis points to 13%.
The government plans to raise PKR 5.254 trillion through the sale of treasury bills and investment bonds in the first quarter of 2025. The State Bank of Pakistan’s schedule indicates six T-Bill auctions during the quarter, targeting PKR 2.2 trillion, while maturing T-Bills amount to PKR 3.45 trillion.
Additionally, three auctions of fixed rate Pakistan Investment Bonds (PIBs) aim to raise PKR 1.05 trillion, with maturing PIBs for the current quarter amounting to PKR 70 billion. Furthermore, six auctions of floating rate PIBs will raise an additional PKR 2.0 trillion during the period.
