The federal government Wednesday raised Rs 170 billion through the auction for Market Treasury Bills. The State Bank of Pakistan (SBP), on October 14, 2014, conducted the auction for the sale of 3-month, 6-month and 12-month T-bills. Participation in the auction was much higher than the target of Rs 175 billion, set by the federal government for this auction and overall received bids Rs 344.137 billion with a realized amount of Rs 332.138 billion.
Some Rs 149.94 billion bids were received for 3-month and Rs 61.96 billion for 6-month MTBs. Bids amounting to Rs 120.23 billion were received for 12-month short-term government securities. The federal government borrowed per target and overall bids amounting to Rs 178.96 billion with realized value of Rs 170.679 billion were accepted.
The cut-off yield for 3-month Treasury Bills remained stable at 6.4380 percent with accepted bids worth Rs 14.78 billion (realized amount). Bids amounting to Rs 61.96 billion were accepted for 6-month at a cut-off yield of 6.4800 percent. Similarly, an amount of Rs 93.93 billion was borrowed through the sale of 12-month bids at 6.4800 percent.

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                                            (Rs In Millions)
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Maturity Period        Realized Value             Face Value
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03-Month                149,941.891              152,177.500
06-Month                 61,961.282               63,960.000
12-Month                120,235.100              128,000.000
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Total                   332,138.273              344,137.500
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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     6.4380     6.4380     14,781.000     15,000.000
06-Month     6.4800     6.4692     61,961.282     63,960.000
12-Month     6.4800     6.4715     93,937.500    100,000.000
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Total                             170,679.782    178,960.000
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