Following 50bps reduction in key policy rate, the cut-off yields of Market Treasury Bills (T-bills) was further slashed on Wednesday. The State Bank of Pakistan auctioned T-bills on Wednesday and in response of its tender, it received cumulative bids worth Rs 449.513 billion (realised) with a face value of Rs 477.679 billion through primary dealers on October 17.
Received bids included Rs 37.608 billion for 3-month, Rs 258.976 billion for 6-month and Rs 152.928 billion for T-bills with a 12-month maturity period. On the whole, bids worth Rs 170.018 billion with a face value of Rs 182.027 billion have been accepted. The cut-off yield of 3-month MTBs decreased by 0.0908 percent to 9.6383 percent from 9.7291 percent with accepted bids worth Rs 12.744 billion. For 6-month MTBs, bids worth Rs 71.606 billion were accepted with a cut-off yield of 9.6481 percent, which previously stood at 9.7583 percent. Similarly, the cut-off yield of 12-month MTBs was set at 9.7118 percent, down from 6.7601 percent and the accepted amount was Rs 85.667 billion. The following data was released by the SBP:

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GOVERNMENT   OF   PAKISTAN   MARKET   TREASURY   BILLS
                             (Rs  In Millions)
======================================================
               Realized Value       Face Value
======================================================
03-Month         37,608.521                 38,447.000
06-Month        258,976.496                271,482.800
12-Month        152,928.400                167,750.000
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Total           449,513.417                477,679.800
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Tenders for Sale of 3-Months, 6-Months & 12-Months Government of Pakistan Market Treasury Bills were invited by the State Bank of Pakistan, Karachi through Primary Dealers from October 16 to 17, 2012. Bids were opened at 11:30 hours on October 17, 2012 which was received as follows:
Out of the above bids, the accepted bids are as under:

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Maturity     Cut-Off     Weighted       Realized            Face
Period        Yield    Avg. Yield        Amount            Value
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03-Month      9.6383      9.6383      12,744.314      13,027.000
06-Month      9.6481      9.6467      71,605.655      75,050.000
12-Month      9.7118      9.6946      85,667.640      93,950.000
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Total                                170,017.609     182,027.000
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