Govt raises over Rs1tr in treasury auctions

The government raised more than Rs1.03 trillion on Wednesday through auctions of treasury bills, Pakistan Investment Bonds (PIB) and the Government Ijara Sukuk (GIS). The State Bank of Pakistan (SBP) conducted the three auctions, which attracted strong investor participation across conventional and Islamic instruments. In the T-bill auction, the SBP targeted Rs650 billion but received an overwhelming response as bids totalled Rs1.803 trillion. It accepted Rs749 billion across all four tenors. The one-month paper attracted the highest bids of Rs648 billion against the target of Rs100 billion, though only Rs61 billion was accepted at a cut-off yield of 10.89%, slightly lower than the previous auction. The three-month T-bill saw bids of Rs211 billion against the target of Rs150 billion, with Rs251 billion accepted at a stable cut-off yield of 11%.