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KARACHI: The cut-off yield of short-term government’s security papers went down up to 50 basis points (bps) in the auction held on Wednesday.

The State Bank of Pakistan (SBP) conducted auction of Government of Pakistan Market Treasury Bills (MTBs) on Jan 8, and raised Rs 434 billion against a target of Rs 250 billion.

Total bids received amounted to Rs 1.7 trillion significantly surpassing the auction target.

Cut-off yields dropped to multi-year lows. The cut-off yield of 3-month MTBs down by 22 bps to reach at 11.7848 percent, lowest since Mar-2022.

Margin on 6-month T-Bills fell 21 bps to set at 11.7899 percent, lowest since Feb-2022 and cut-off yield of 12-month MTBs declined by 50 bps at 11.8004 percent, lowest since Feb-2022.

The accepted bids include Rs 330 billion of competitive and Rs 104 billion of non-competitive.

Copyright Business Recorder, 2025

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