Govt picks just Rs283bn against record bids of R2.8tr
Investors mainly banks were in a hurry to park a record Rs2.8 trillion in the treasury bills but the government remained cool and accepted only Rs283 billion in the auction held on Wednesday. Despite a cut in the cut-off yield up to 59 basis points, the investors were willing to invest Rs2.109tr in 12-month papers, Rs76.7bn in 6- and Rs568bn in 3-month tenors. Market experts found it a clear indication that the interest rate would see a cut in the next monetary policy review. The government had a target of Rs100bn for this auction while the maturity amount was Rs122bn. The yields on three-, six-, and 12-month papers were 20.99pc, 20.96pc and 20.84pc, respectively.