T-bill yields firm up ahead of monetary policy decision

The Treasury bill yields firmed up at the weekly bill auction held yesterday, ahead of the monetary policy decision, which is largely expected to leave the policy rates at their current levels for the third consecutive month.

 
The weekly bill auction saw only little change in the yields, with the short-term three-month and six-month yields rising marginally while the benchmark one-year bill easing. 

The auction also saw the Central Bank accepting the entire amount of Rs.85.0 billion offered with the usual tilt towards the three-month bills, under which it raised Rs.76.4 billion. 

The three-month bills gained 40 basis points to 32.34 percent and the six-month bills added two basis points to settle at 30.61 percent, reflecting that the recent volatility has reduced to a minimum in the last couple of weeks after some sharp movements in the yields caused by the concerns of uncertainty over domestic debt restructuring. 
Meanwhile, the one-year bill shed 10 basis points to 29.75 percent.

Markets are broadly settled over the future course of the monetary, fiscal and exchange policies of the country after a raft of reforms undertaken by the authorities since April this year to restore stability.