KARACHI: The federal government on Wednesday raised Rs1.66 trillion against sale of short-term security papers.

The State Bank of Pakistan (SBP) conducted an auction for sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs) with settlement date of December 15, 2022. Cumulatively, bids worth Rs2.286 trillion were received for all three papers and most bids were submitted for the 3-month MTBs.

Bids worth Rs 1.7 trillion were received for 3-month MTBs, Rs 294 billion for 6-month MTBs and Rs 275 billion for 12-month MTBs. Out of total bids, the federal government borrowed Rs 1.56 trillion with a realized value of Rs 1.623 trillion through sale of short-term government papers as against target of Rs 1.35 trillion.

An amount of Rs 1.572 billion was borrowed against sale of 3-month MTBs and its cut-off remained unchanged at 16.999 percent. Cut-off yields of 6-month MTBs increased by 10 bps to 16.8999 percent with accepted bids of Rs 40.709 billion.

The cut-off yield of 12-month MTBs fell by 4 bps to 16.8000 percent and an amount of Rs 10.5 billion was borrowed. In addition, bids worth Rs 42 billion were accepted from non-competitive bids. Including the non-competitive bid, the overall government raised Rs 1.665 trillion through sale of MTBs.

In addition, the auction for the sale of 2-year and 3-year Pakistan Investment Bonds (PIBs) - Floating Rate (PFL) was also held on Wednesday. Overall bids amounted to Rs 717.529 billion were received and the SBP accepted bids worth Rs 559 billion and Rs 3.117 billion of non-competitive bids.

Copyright Business Recorder, 2022