Amid expectations for an increase in key policy rate, a very thin participation was witnessed in the auction for Government of Pakistan Market Treasury Bills (MTBs), held on Tuesday. The market is expecting an increase of 50 basis points in the discount rate as the SBP is all set to unveil MPS today (Wednesday). Most of the banks have adopted a wait and see policy and avoided investment in the government papers.
The State Bank conducted auction for the sale of 3-month, 6-month & 12-month Government of Pakistan Market Treasury Bills (MTBs) on November 12, 2013. In response to the State Bank's tender, overall Rs 62.417 billion with a realised amount of Rs 61.073 billion bids were received for sale of 3- and 6-month. No bid was received for 12-month as banks are expecting some increase in the discount rate. The borrowed amount under this auction is much lower than the target set by the federal government. Overall, bids worth Rs 58.012 billion with a realised amount of Rs 56.76 billion were accepted against the target of Rs 275 billion.
The cut-off yield for 3-month Treasury Bills stood at 9.4352 percent with accepted bids worth Rs 57.95 billion. Bids worth Rs 53 million were accepted for 6-month and its cut-off yield remained stable at 9.4640 percent. The auction was scheduled for Wednesday, November 13, 2013, however due to Ashura holidays, it was conducted a day earlier on Tuesday, November 12, 2013.
Comments
Comments are closed.