The federal government Wednesday borrowed some Rs 2.9 billion through the sale of government of Pakistan Market Treasury Bills (MTBs) Overall participation in the auction was very thin as financial institutions are expecting some surge in key policy rate in the upcoming monetary policy to be announced Friday.
The State Bank of Pakistan (SBP), on March 28, 2018, conducted the auction for the sale of 3-month, 6-month and 12-month MTBs and received bids amounting to Rs 138.263 billion with a realized amount of Rs 136.181 billion only for the sale of 3-month T-bills. However, no bid was received for 6-month and 12-month varieties.
Out of total received bids, the federal government borrowed Rs 2.913 billion with a realized value of Rs 2.872 billion at a cut-off yield of 6.2591 percent.
The borrowed amount under this auction is much lower than the target of Rs 650 billion set by the federal government. The maturing amount for this auction stood at Rs 576 billion with an additional amount of Rs 73.833 billion.
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