The federal government Wednesday borrowed Rs 103 billion from schedule banks through the auction for Market Treasury Bills (MTBs). The State Bank of Pakistan (SBP), on July 8, 2015, conducted the auction for the sale of 3-month, 6-month & 12-month MTBs and received bids less than the target. This was the first auction for this fiscal year, ie, 2016.
Overall, bids amounting to Rs 143.853 billion with a realised amount of Rs 139.529 billion were received for the sale of 3-, 6-and 12-month bills against the target of Rs 150 billion. The received bids included Rs 67.118 billion for 3-month and Rs 54.734 billion for 6-month and some Rs 22 billion for 12-month T-bills. The federal government accepted bids amounting to Rs 103 billion with a realized value of Rs 99.8 billion.
The cut-off yield of 3-month Treasury Bills stood at 6.9308 percent with accepted bids worth Rs 48.506 billion (realized amount). Bids worth Rs 35.165 billion (realized value) were accepted for 6-month and its cut-off yield was set at 6.9513 percent. Some Rs 16.128 billion were borrowed through the auction of 12-month T-Bills at a cut-off yield of Rs 6.9710 percent. The SBP has issued the following:

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                                          (Rs In Millions)
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                              Realized Value    Face Value
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03-Month                         66,062.742     67,118.920
06-Month                         52,897.379     54,734.100
12-Month                         20,569.325     22,000.000
Total                           139,529.446    143,853.020
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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       6.9308      6.9293  48,506.477   49,280.000
06-Month       6.9513      6.9502  35,165.414   36,384.100
12-Month       6.9710      6.9710  16,128.750   17,250.000
Total                              99,800.641  102,914.100
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