Govt raises Rs527bn, exceeding T-bill auction target

KARACHI: The government raised more than double the target set for the auction of treasury bills held on Wednesday. The cut-off yields on three-month and 12-month tenors were reduced by 27 and three basis points, respectively, while the rate on benchmark six-month T-bills remained unchanged. The yields on three, six and 12 months were 21.4pc, 20.4pc and 20.3pc, respectively. The auction once again reflected the banks’ growing appetite for domestic bonds which helped them to earn 70 to 90pc more profits in 2023. The total bids for the T-bills were Rs1,354.4bn while the government raised Rs526.9bn against the target of Rs225bn.