Following the dip in the key policy rate, the cut-off yield of Market Treasury Bills (MTBs) was reduced by 27-30 basis points in the auction held on Wednesday. The State Bank of Pakistan (SBP) auctioned 3-month, 6-month & 12-month government of Pakistan MTBs on June 26. In response of the State Bank's tender, the overall face value of the offered MTBs was Rs 187.565 billion against realised value of bids received through Primary Dealers worth Rs 177.055 billion.
However, SBP accepted bids worth Rs 152.57 billion with a realised value of Rs 143.954 billion. The cut-off yield of the 3-month MTBs declined by 27 basis points to 8.9583 percent: bids worth Rs 25.5 billion were accepted and their cumulative realised value was worth Rs 24.98 billion.
The cut-off yield for the 6-month t-bills was set at 8.9673 percent, down by 28 basis points and cumulatively bids worth Rs 58.77 billion bids were accepted. A similar decline was witnessed in the cut-off yield of 12-month MTBs which declined by 30 basis points, settling at 8.9808 percent: bids worth Rs 68.3 billion were accepted.
SBP issued following: Tenders for Sale of 3-Month, 6-Month & 12-Month Govern-ment of Pakistan Market Treasury Bills were invited by the State Bank of Pakistan, Karachi through Primary Dealers on June 26, 2013. Bids were opened at 12:00 hours on June 26, 2013 which was received as follows:
PRESS COMMUNIQUE GOVERNMENT OF PAKISTAN MARKET TREASURY BILLS
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 on June 26, 2013. Bids were opened at 12:00 hours on June 26, 2013 which was received as follows:

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                                         (Rs In Millions)
                     Realized Value            Face Value
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03-Month               32,280.047              32,945.000
06-Month               71,098.168              74,270.000
12-Month               73,676.695              80,350.000
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Total                 177,054.910             187,565.000
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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    8.9583     8.9316    24,986.406    25,500.000
06-Month    8.9673     8.9161    56,268.393    58,770.000
12-Month    8.9808     8.9563    62,699.815    68,300.000
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Total                           143,954.614   152,570.000
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