In a recent auction of Treasury Bills (T-Bills), the government of Pakistan successfully raised Rs. 640 billion, slightly below its target of Rs. 650 billion, according to data provided by the State Bank of Pakistan (SBP). The auction attracted a total participation of Rs. 1,085 billion, surpassing the maturity of Rs. 412 billion.

The cut-off yields for T-Bills increased across various tenures, reflecting a rise in borrowing costs. For the 1-month paper, the yield rose by 34 basis points (bps) to 12.38 percent, while the 3-month and 6-month papers saw increases of 19 bps and 33 bps to 12.01 percent and 11.99 percent, respectively. The 12-month T-Bills observed a smaller hike of 11 bps, setting the yield at 12.01 percent.

In the competitive bidding process, the government secured Rs. 221 billion for the 1-month paper, Rs. 105 billion for the 3-month paper, Rs. 75 billion for the 6-month paper, and Rs. 210 billion for the 12-month paper. An additional Rs. 30 billion was raised through non-competitive bids, bringing the total proceeds of the auction to Rs. 640 billion.