SBP Raises Rs498 Billion Through T-Bills Auction Amid Global Gold Surge
The State Bank of Pakistan (SBP) conducted a Market Treasury Bills auction on Wednesday and successfully raised Rs498 billion, exceeding its target of Rs500 billion. The central bank accepted bids for one-month, three-month, six-month, and 12-month paper, with cut-off yields rising across all tenors.
The highest yield was seen in the 12-month paper, which attracted Rs62 billion at 11.99%, up just four basis points from the previous auction. The total bids received in the auction amounted to approximately Rs2.1 trillion.
In other news, gold prices in Pakistan declined despite a global surge to multi-month highs. According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola fell by Rs3,700 to Rs458,236. In contrast, spot gold climbed 3.7% to $4,496.39 per ounce on international markets.
The global surge in gold prices was attributed to an unexpected announcement by the US Treasury, which doubled its limit for buying back US bonds to $40 billion. This move has weakened the dollar's value and increased gold's value, causing spot gold to break above its 100-day moving average.