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Cut-off yields on Treasury Bills (T-Bills) fell by 24-26 basis points (bps) in the paper"s auction held on Wednesday.

According to data released by the State Bank of Pakistan (SBP), the government raised Rs. 877 billion against the original target of Rs. 650 billion in the auction due to the unchanged central bank interest rate.

Investors bought government bonds at a lower yield than in the previous auction due to lower-than-expected inflation data and forecasts of an unchanged key rate.

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Official data indicated marginal yields on three-month Treasury bills fell 26 basis points to 15.74 percent from 15.99 percent seen on Sept. 21. Similarly, yields on the six-month security fell 25 basis points to 15.75 percent, while yields on the 12-month paper fell 24 basis points to 15.75 percent from 15.99 percent recorded in the previous auction.

The government raised Rs. 508 billion against the target amount of Rs. 200 billion for three-month paper in a competitive auction and fetched Rs. 52 billion against a target of Rs. 250 billion for a half-year paper.

Additionally, it raised Rs. 212 billion against a target of Rs. 200 billion through a 12-month bond during the auction.

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The entire amount collected for the three-month paper was Rs. 558 billion Rs. 77 billion for six-month paper and Rs. 241 billion for 12-month paper.

Another breakdown of official figures shows that the government raised Rs. 772 billion from competitive auction and Rs. 105 billion through non-competitive bids, bringing total revenues of Rs. 877 billion.