Islamabad: Pakistan’s government securities auctions on Wednesday witnessed strong investor participation, with the State Bank of Pakistan (SBP) raising a total of PKR 1.09 trillion through treasury bills (T-bills) and Pakistan Investment Bonds (PIB) Floaters. The cut-off yields declined across all T-bill tenors, indicating positive market sentiment.
In the T-bills auction, the government accepted PKR 979 billion, exceeding the cumulative target of PKR 850 billion, from total bids worth PKR 2.56 trillion.
The one-month T-bills saw an acceptance of PKR 87 billion at a cut-off yield of 10.20%, marking a 29-basis-point drop from the previous auction. For the three-month tenor, PKR 80 billion was accepted at a yield of 10.15%, down 34 basis points. Six-month T-bills were accepted at PKR 52 billion with a cut-off yield of 10.16%, declining 32 basis points.
The majority of the auction was concentrated in the 12-month papers, where the government raised PKR 761 billion at a cut-off yield of 10.16%, a 33-basis-point decrease from the prior auction.
In addition, the 10-year PIB Floating Rate (Semi-Annual) auction collected PKR 108 billion, significantly above the target of PKR 50 billion, with total bids reaching PKR 758 billion. The cut-off price was set at 97.20, translating to a cut-off rate of 10.93%. The spread over the benchmark narrowed to 47 basis points, compared to 63 basis points in the previous auction.
The results reflect strong investor confidence in government-backed securities, as the easing yields signal improved market sentiment amid ongoing economic developments.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
