Over Rs672bn raised through auction for MTBs, cut-off yield soars up to 129 bps

KARACHI: The federal government raised over Rs 672 billion through the auction for short-term government papers.

The cut-off yield on government of Pakistan Market Treasury Bills (MTBs) further increased up to 129 basis points (bps) in the auction held Wednesday. In the previous auction held on April 20, the margin on short-term government securities was surged ranging 55 bps to 70 bps.

The State Bank of Pakistan (SBP) conducted the auction for the sale of 3-month, 6-month and 12-month T-bills on April 27, 2022 and received bids worth Rs 708 billion with a realized value of Rs 657.46 billion.

The received bids include Rs 340.711 billion for 3-month, Rs 151 billion for 6-month and Rs 216.257 billion for 12-month tenors. The federal government accepted bids amounting to Rs 614.410 billion. In addition, non-competitive bids worth Rs 58.034 billion were accepted. Total acceptance was Rs 672.44 billion against the target of Rs 500 billion set for this auction.

The cut-off yield of all short-term government securities mounted up ranging between 96 bps to 129 bps in the auction held on Wednesday.

Copyright Business Recorder, 2022