The Ministry of Finance on Wednesday rejected all bids for the sale of 3-, 6-, 12 months Government of Pakistan Market Treasury Bills (MTBs). Very thin participation was witnessed in the auction of MTBs, conducted by State Bank of Pakistan (SBP).
In response to the tender for the sale of 3-month, 6-month and 12-month Market Treasury Bills (MTBs), overall Rs 44.8 billion with a realised amount of Rs 42.562 billion bids were received through Primary Dealers from December 13 to 14, 2011. However, the Ministry of Finance rejected all bids without assigning any reason.
Bankers said banks offered a high cut-off yield in the yesterday auction; therefore the ministry decided not to accept bids. The cut-off yield quoted by banks was some 20 to 25 basis points higher than the last auction. Currently financial market is witnessing some liquidity shortage, which was chief reason for high yield offer by banks, they added. Meanwhile, the SBP received Rs 20.55 billion bids for 3-month, Rs 17.75 billion for 6-month and Rs 6.5 billion for 12-month but all the bids were rejected by the ministry.
Comments
Comments are closed for this article.