KARACHI: The auction for short-term bonds received record over Rs 2 trillion bids on higher liquidity. Investors submitted bids some five times higher than the target in the auction of Pakistan Market Treasury Bills (MTBs) held on Wednesday. Analysts said that the massive participation reflects the strong liquidity in the market.

Overall bids worth Rs2.19 trillion were received as against target of Rs400 billion and maturity of Rs893 billion. Out of total received bids, the SBP, on behalf of the federal government, raised a total of Rs 820 billion.

Auction for MTBs: SBP rejects all bids

Most of amount Rs 502 billion were raised against the sale of12-month T-Bills. While Rs 173 billion against sale of 3-month MTBs and Rs 142 billion through sale of 6-month treasury bills.

As per expectations, the cut-off yields for short term government bonds decreased upto140bps. Yield on 3-month bonds fell by 140bps to 13.8998 percent, 6-month bonds fell by 84bps to 13.50 percent, and 12-month bonds fell by 64bps to 13.0997percent.

Copyright Business Recorder, 2024