KARACHI: Margin on short-term government papers further increased up to 55 basis points (bps) in the auction held Wednesday.
The State Bank of Pakistan (SBP) conducted the auction for the sale of 3-, 6- and 12-month Government of Pakistan Market Treasury Bills (MTBs) on March 22, 2022 and received bids amounting to Rs 893 billion.
The federal government raised some Rs 598 billion against the tentative target of Rs 800 billion. The cut-off yields of 3-month MTBs rose by 55bps to 12 percent up from 11.4508 percent and Rs 215 billion were borrowed.
The cut-off yields of 6-month also increased by 40 bps to fix at 12.5 percent against the Rs 214 billion borrowing. Some Rs 294 billion were raised through sale of 12-months T-bills and its cut-off yield surged by 40bps to reach 12.70 percent.
The cut off yield of short-term and long-term government securities is rising gradually for the last two weeks.
Copyright Business Recorder, 2022