The federal government Wednesday raised Rs 90 billion through the auction for short-term government papers. The State Bank of Pakistan (SBP), on October 26, 2016, conducted the auction for the sale of 3-month, 6-month and 12-month Market Treasury Bills (MTBs) and received bids amounting to Rs 186.981 billion with a realized amount of Rs 182.854 billion.
Bids worth Rs 122.681 billion were received for 3-month T-bills, Rs 41.3 billion for 6-month and 12-month T-bills fetched bids amounting to Rs 23 billion. The federal government borrowed some Rs 92.382 billion (realized amount Rs 90.223 billion) through the auction of MTBs against the target of Rs 200 billion. The cut-off yield of 3-month rose slightly, while the margin on 6- and 12-month T-bills remained stable. With some increase in the cut-off yield of 3-month Market Treasury Bills, the margin of 3- and 6-month comes on the same level of 5.90 percent.
Bids amounting to Rs 68.949 billion (realized amount) were accepted for 3-month and its cut-off yield was set at 5.9017 percent, up 4 basis points. Some Rs 971.4 million were borrowed at 5.9046 percent against 6-month MTBs. Similarly, the cut-off yield of 12-month also remained stable at 5.9148 percent and bids amounting to Rs 101.636 billion were accepted.