Heavy precipitation was witnessed in auction of government of Pakistan Market Treasury Bills (MTBs), as overall Rs 231 billion worth bids were received for sale of 3-, 6- and 12-month T-bills. The State Bank of Pakistan (SBP) on Wednesday accepted Rs 194.55 billion worth bids with realised amount of Rs 187.45 billion for the auction of 3 and 6-month government of Pakistan Market Treasury Bills.
The SBP had invited the bids through Primary Dealers from January 25-26, 2011. Bids were opened at 1130 hours on January 26, 2011 and total amount received by SBP was Rs 231.305 billion with realized value of Rs 222.533 billion for the sale of 3-, 6- and 12-month t-bills.
Major participation was witnessed in the 3-month t-bills, which reflects that banks were interested to invest for short-term period instead of long term. Accepting Rs 173.055 billion worth bids the central bank has set cut-off yield of three-month at 13.6699 percent up by 23 basis points. The six-month t-bills yield increased by 16 bps to 13.7128 percent with Rs 13 billion bids and for the 12-month, the cut-off yield has been set at 13.8814 percent up by 10 bps with Rs 8.5 billion bids.