The federal government Wednesday borrowed Rs 387 billion through the auction for Market Treasury Bills to tackle fiscal deficit. The State Bank of Pakistan (SBP), on March 1, 2017, conducted the auction for the sale of 3-month, 6-month and 12-month MTBs and received bids amounting to Rs 483.206 billion with a realised amount of Rs 473.038 billion. The received bids were much higher than the target of Rs 350 billion, set by the federal government for this auction.
Some Rs 257.506 billion bids were received for 3-month and Rs 220.7 billion for 6-month MTBs while bids amounting to Rs 5 billion were received for 12-month short-term government securities. The federal government borrowed slightly higher than tentative target and overall bids amounting to Rs 396.093 billion with realised value of Rs 387.471 billion were accepted through the sale of 3- and 6- and 12-month MTBs.
The cut-off yield of all MTBs remained stable in this auction. Bids worth Rs 187.576 billion (realised value) was accepted at 5.9463 percent against 3-motnh papers. Some Rs 197.064 billion was borrowed through 6-month short-term government papers at 5.9896 percent. 12-month MTBs worth Rs 2.83 billion were sold at 5.9935 percent.
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