KARACHI: The federal government borrowed Rs 283 billion in the Market Treasury Bills auction held on Wednesday.
Overall, T-Bill auction fetched record participation of Rs2.75 trillion, however the federal government raised only Rs283 billion including Rs 66 billion of non-competitive bids as against the target of Rs100 billion and maturity of Rs122 billion.
Analysts at Topline said that investors aggressively tried to lock in rates at higher yields amid expectation of rate fall. But the government raised far lesser amount compared to received bids.
Interestingly, yields fall ranging 44 to 59 basis points (bps) in the auction. The cut-off yield on 3, 6, and 12-month bonds stands at 20.99 percent, 20.96percent and 20.84 percent, respectively.
In the last few months, the interest rate on T Bills in the Auction has fallen by more than 3 percent. Analysts said that it’s clear signal of the rate cut soon.
Copyright Business Recorder, 2024
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