The federal government Wednesday raised Rs 602 billion through auction for Market Treasury Bills (MTBs). The State Bank of Pakistan (SBP), on December 6, 2017, conducted the auction for the sale of 3-month, 6-month and 12-month T-bills. Overall, the received bids worth Rs 614.304 billion with a realized amount of Rs 604.427 billion.
Bid worth Rs 525.204 billion were received for 3-month tenors and Rs 84.1 billion for 6-month MTBs. However, 12-month T-bills fetched lowest bids as financial institutions seemed reluctant to invest at lower interest rate. Bids amounting to Rs 5 billion were received for 12-month government securities.
The federal government borrowed higher than target and accepted bids amounting to Rs 602.804 billion with a realized value of Rs 593.38 billion against the target of Rs 550 billion.
The cut-off yield for 3-month Treasury Bills remained stable at 5.9910 percent with accepted bids worth Rs 516.852 billion (realized amount). Bids amounting to Rs 76.798 billion were accepted for 6-month at a cut-off yield of 6.0109 percent. All the bids of 12-month tenors were rejected by the federal government.
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