T-bill rates slashed by up to 62bps

The government slashed treasury bill rates by up to 62 basis points in the auction held on Wednesday, but the amount raised fell short of the target. According to data released by the State Bank of Pakistan, the auction attracted Rs1.121 trillion from investors, but the government remained below the Rs225 billion target, raising only Rs184.6bn. A significant change occurred in the cut-off yields, which were reduced for all tenors. The three-month T-bill rate was cut by 50 basis points to 20.49 per cent, down from the previous yield of 20.99pc. The government raised Rs8bn against bids of Rs446.5bn. The benchmark six-month T-bill rate saw a reduction of 56 basis points to 20.4pc, compared to 20.96pc in the previous auction held on January 10. The amount raised for this tenor was Rs2.6bn against bids of Rs62.9bn.