Heavy participation was witnessed in Treasury Bills (MTBs) auction while State Bank of Pakistan received bids worth Rs 492 billion. Bankers said that banks were considering MTBs' a high profit instrument and trying to invest maximum in the T-bills. However, the healthy participation resulted in decline in the cut-off yield of short-term papers.
SBP conducted auction for the sale of 3-, 6- and 12-month MTBs on Wednesday and received bids worth Rs 492 billion with a realised amount of Rs 455.718 billion. Six months T-bills attracted highest bid worth Rs 316.592 billion. Rs 48.88 billion bids were received for 3-month, and Rs 126.99 billion for 12-month. The State Bank accepted bids worth Rs 254 billion with a realised amount of Rs 235 billion.
SBP set a cut-off yield of 13.0697 percent down from 13.2542 percent for 3-month T-bills and accepted bids worth Rs 12.24 billion. For six months bills cut-off yield set at 13.4841 percent from 13.6213 percent with Rs 187 billion bids. Similarly, with a decline of 0.0779 percent, a cut-off yield of 13.7905 was set for 12-month T-bills with 55.05 billion bids.
SBP issued following: Tenders for Sale of 3-Months, 6-Months & 12-Months Government of Pakistan Market Treasury Bills were invited by the State Bank of Pakistan, Karachi through Primary Dealers from May 03 to 04, 2011. Bids were opened at 11:30 hours on May 4, 2011 which was received as follows:
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(Rs In Millions)
Realised Value Face Value
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03-Month 47,454.195 48,888.000
06-Month 296,641.518 316,592.900
12-Months 111,622.312 126,993.000
Total 455,718.025 492,473.900
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Out of the above bids, the accepted bids are as under:
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Maturity Cut - Off Weighted Realised Face
Period Yield Avg. Yield Amount Value
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03-Month 13.0697 13.0643 11,884.679 12,242.000
06-Month 13.4841 13.4528 175,150.960 186,900.000
12-Months 13.7905 13.7833 48,397.495 55,050.000
Total 235,433.134 254,192.000
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