The cut-off yield on short-term government papers rose slightly in the auction held Wednesday. The State Bank of Pakistan (SBP) conducted the auction for the sale of 3-month, 6-month and 12-month Market Treasury Bills (MTBs) auction and accordingly received bids amounting to Rs 197.469 billion with a realized value of Rs 193.522 billion.
Most of the bids were received for short-term period T-bills and some Rs 120.208 billion bids were received for 3-month, Rs 74.761 billion for 6-month and Rs 2.5 billion for 12-month varieties.
The federal government accepted bids amounting to Rs 149.969 billion (Rs 147.249 billion realized value) for the sale of 3-month and 6-month MTBs, while the federal government rejected all bids of 12-month period. The borrowed amount is slightly lower than the target of Rs 150 billion set for this auction.
The cut-off yield of all MTBs also slightly increased in the auction. The cut-off yield of 3-month MTBs was set at 5.9910 percent, up 4 basis points (bps) with accepted bids of Rs 103.783 billion (realized amount). For the 6-month, bids worth Rs 43.465 billion were accepted at a cut-off yield of 6.0109 percent up from 5.9471 percent.
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