Karachi: The federal government on Wednesday borrowed over Rs 2 trillion through sale of short-term security papers. The State Bank of Pakistan (SBP), on behalf of federal government, conducted auction for sale of Government of Pakistan Market Treasury Bills (MTBs) and received bids worth Rs 3.25 trillion for sale of 3-, 6- and 12-month Tbills.

The 3-months MTBs fetched bid amounted to Rs 2.504 trillion, 6-months Rs 370 billion and 12-month TBills received bids worth Rs 374.6 billion.

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Out of received bids, the federal government raised Rs 2.074 trillion including non-competitive bids of Rs 74 billion against the target of Rs 2.25 trillion and maturity of Rs2.469 trillion.

An amount Rs 1.996 trillion was borrowed through sale of 3-month treasury bills and Rs 3.4 billion against sale of 12-month MTBs .while all bids of 6-month security papers was rejected.

The 3-month cut-off yields decreased by 2 basis points (bps) to 22.8803 percent. In addition, 12-month MTBs cut-off yields down by 4 bps to 22.9400 percent.

Copyright Business Recorder, 2023