A very thin participation was witnessed in the auction for Government of Pakistan Market Treasury Bills (MTBs) on Wednesday. The State Bank of Pakistan (SBP), on August 15, 2018, conducted the auction for the sale of 3-month, 6-month and 12-month MTBs. However, participation in the auction was less than target of Rs 100 billion, set by the federal government for this auction.
Overall, bids amounting to Rs 45.441 billion (face value) with a realized amount of Rs 44.646 billion were received for 3-month T-bills. However, no bid was submitted for and 6-month and 12-month tenors as banks appeared reluctant to invest in long-term bonds due to expected surge in key policy rates in future.
The federal government borrowed Rs 39.734 billion through the sale of 3-month T-bills at a cut-off yield of 7.75 percent.
Comments
Comments are closed.