AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Print Print 2023-02-23

Rs346.745bn bids received at auction for MTBs: Interest rate on short-term govt papers soars to 19.95pc

  • Market seems to be expecting a significant increase in interest rates, as is evident from the participation
Published February 23, 2023

KARACHI: Interest rate on short-term government papers rose to 19.95 percent in the auction held on Wednesday. The State Bank of Pakistan (SBP) conducted the auction for Government of Pakistan Market Treasury Bills (MTBs) on February 22 and received bids worth Rs 346.745 billion.

The federal government aggressively borrowed Rs258 billion at a higher cutoff yield. The cut-off yield of 3-month was set at 19.95 percent and government raised Rs 152 billion. Overall, the cut-off yield increased by almost 2 percent compared to previous auction.

Half-yearly MTBs interest rate was set at 19.90 percent and the government borrowed Rs 12 billion. In addition, the cut-off yield of one year T-Bills rose to 19.7 percent for Rs 10 billion.

Govt raises Rs1.6trn through MTBs’ sale

Analysts said that the market seems to be expecting a significant increase in interest rates, as is evident from the participation at such high rates. But even strange is the fact that the SBP lifted the offered amount till such high rates.

An analyst Samiullah Tariq said that for the 3-month T-Bills, the weighted average participation was at a yield of 19.2652 percent. This is substantially lower than the cut-off rate of 19.95 percent.

Usually, the difference between the cut-off rate and weighted average rate isn’t more than 15 to 20 bps for the 3-month T-Bills, he added.

Copyright Business Recorder, 2023

Comments

Comments are closed.

montaje parbrize Feb 23, 2023 08:00am
I'm gone to tell my little brother, that he should also pay a visit this weblog on regular basis to obtain updated from most recent reports. http://preturi-parbrize.ro/preturi-parbrize/parbrize.php
thumb_up Recommended (0)
Hamdard Pakistani Feb 23, 2023 09:17am
MPC meeting of March 2022 shall decided the interest rate of 20%!!!!
thumb_up Recommended (0)