The federal government Wednesday raised some Rs 591 billion through the auction for short-term government papers. The auction for the sale of 3-month, 6-month and 12-month government of Pakistan Market Treasury Bills (MTBs) was conducted by the State Bank of Pakistan (SBP), on January 29, 2020. Banks aggressively participated in the auction and overall bids amounting to Rs 1.184 trillion with a realized amount of Rs 1.13 trillion were received.
Bids worth Rs 949.755 billion were received for 3-month T-bills; Rs 62 billion for 6-month and bids amounting to Rs 172.3 billion were submitted for 12-month variety.
The federal government accepted bids amounting to Rs 590.464 billion with a realized value of Rs 563.71 billion through sale of 3-, 6- and 12-month short-term government papers. The borrowed amounted is slightly higher than tentative borrowing target of Rs 500 billion for this auction.
Margin on three months T-bills fell by 4 basis points (bps) as the government borrowed Rs 472.128 billion against sale of 3-month MTBs at 13.4296 percent in the auction held Wednesday. Some Rs 19.469 billion were borrowed through the sale of six-month papers. Its cut-off yield remained stable at 13.2890 percent. In addition, some Rs 99 billion were raised through the auction for 12-month MTBs at 13.1340 percent.
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