Six-month treasury bills auction fetches Rs 2.4 billion

The State Bank on Wednesday raised Rs 2.40 billion through auction of Treasury Bills of six months maturity. The State Bank had fixed a target of Rs 5 billion. However, it remained short of target but raised the cut-off yield by 60 basis points. The cut-off yield on 6-month T-bills was 3.8426 percent per annum.
Analysts said the increase in the cut-off yield was a sign that SBP wants increase in the interest rate gradually and was making effort to control the inflation which hurts economic growth of the country.