The cut-off yield of Market Treasury Bills (MTBs) declined up to 34 basis points (bps) in the auction held on Wednesday. The State Bank of Pakistan (SBP) conducted the auction for the sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs) on January 7, 2015. Overall some Rs 603.123 billion with a realised amount of Rs 559.347 billion bids were received through Primary Dealers.
Most of the bids were received for 12-month as the banks are expecting another cut in the key policy rate to be reviewed this month. The SBP is likely to announce Monetary Policy for next two months in mid-January and the market is expecting 50-100 basis points cut in the interest rate followed by lower inflation and arrival of foreign inflows.
On Wednesday, the SBP received some Rs 28.377 billion bids (realised amount) for 3-month, Rs 124.624 billion for 6-month and Rs 406.346 billion bids for 12-month tenors.
Out of the received bids, the SBP accepted bids amounting to Rs 214.458 billion with a realised amount of Rs 199.867 billion for the sale of 3-, 6- and 12-month MTBs against the target of Rs 225 billion.
Ahead of expected decline in interest rate, the cut-off yield of all T-bills has reduced slightly in the auction. The cut-off yield of 3-month MTBs has been reduced by 34 bps to 9.1395 percent compared to 9.4789 percent in the previous auction, while bids amounting to Rs 9.795 billion (realised value) have been accepted.
For the 6-month MTBs, bids worth Rs 63.277 billion bids have been accepted at 9.2523 percent, down by 23 bps. Similarly, for the 12-month MTBs, Rs 126.794 billion bids have been accepted at a cut-off yield of 9.1477percent, down by 32 bps. The cut-off yield for 12-month tenor stood at 9.4731 percent in the previous auction held on December 24, 2014.
TABLE
The SBP has issued the following:
GOVERNMENT OF PAKISTAN MARKET TREASURY BILLS
Tenders for Sale of 3-Month, 6-Month & 12-Month Government of Pakistan Market Treasury Bills were invited by the State Bank of Pakistan, Karachi through Primary Dealers on January 7, 2015. Bids were opened at 12:00 hours on January 7, 2015 which was received as follows:
============================================================
( Rs In Millions)
Realized Value Face Value
============================================================
03-Month 28,377.480 28,985.000
06-Month 124,624.157 130,371.200
12-Month 406,346.186 443,767.030
Total 559,347.823 603,123.230
============================================================
Out of the above bids, the accepted bids are as under:
============================================================
Maturity Cut-Off Weighted Realized Face
Period Yield Avg. Yield Amount Value
============================================================
03-Month 9.1395 9.0715 9,795.500 10,000.000
06-Month 9.2523 9.1311 63,277.630 66,158.700
12-Month 9.1477 9.0990 126,794.580 138,300.000
============================================================
Total 199,867.710 214,458.700
============================================================
Comments
Comments are closed.