In responding to the sharp 700 basis point increase in policy interest rates last week, Treasury Bill(T-Bill) yields at the auction today escalated in the range of 559 basis points to 767 basis points.
The Central Bank (CB) accepted 93.7% of the total offered amount of Rs. 87.5 billion was accepted at the bill auction held today. T-Bill yields recorded a back-to-back rise while topping the previous week’s high with the yields of 03M-month 06-month and 1-Year escalating to 19.71% (+559bps), 22.73% (+737bps), and 23.36% (+767bps).
The newly appointed CB Governor last week said that inflation could accelerate to 28 percent in the coming months reaching its peak.
Investors were stunned by the results of the Treasury bill auction and recorded no trades in the secondary market.