Auction yields sail higher across maturities

First Capital said the primary market yields continued to surge for the fourth consecutive week across the board at the bill auction held yesterday while the overall secondary market remained dull and generated ultra-thin volumes on the back of rising concerns over domestic debt restructuring, with limited activities witnessed on 2027 maturity which traded at 27.50%. 

At the T-Bill auction, 90.8% of the total offered amount of Rs. 160.0 billion was subscribed although higher bids were quoted by the participants. Accordingly, weighted average yields of 03M, 06M and 01Y T-Bills were further advanced to 25.82% (+8bps), 25.42% (+15bps) and 23.14% (+14bps), respectively.