KARACHI: The government on Wednesday raised Rs1.165 trillion by selling treasury bills exceeding the auction target by Rs265 billion at slightly reduced rates, reported the State Bank of Pakistan (SBP).

The investment pattern has shifted to long-maturity T-bills for the last two auctions, indicating investors are expecting a cut SBP policy rate in the upcoming monetary policy review.

The highest bids were offered for the longest tenor of 12 months and the government picked the highest amount for the same.

Total bids of Rs2.041tr were received at the auction including Rs1.284tr for 12 months T-bills, Rs522.5bn for three-month and Rs224.7bn for six 6-month tenors.

The government raised the highest amount of Rs650.9bn for 12-month papers at 21.43pc, Rs325.7bn for three-month at 21.44pc and Rs52.2bn for six-month at 21.42pc.

The cut-off yields were slashed by 5, 7 and 7 basis points for three, six and 12-month papers, respectively.

Published in Dawn, November 30th, 2023