Banks Wednesday aggressively participated in the auction of short term government papers and overall one trillion rupees bids were submitted as against target of Rs 450 billion. The State Bank of Pakistan (SBP), on January 18, 2017, conducted auction for the sale of 3-month, 6-month & 12-month MTBs and received bids amounting to Rs 1.105 trillion with realised amount of Rs 1.072 trillion.
SBP received bids amounting to Rs 265.502 billion bids for 3-month, Rs 611.124 billion for 6-month and Rs 195.117 billion for 12-month. The federal government borrowed Rs 535.403 billion with realized amount of Rs 519.360 billion. The borrowed amount under this auction is much higher than the target of Rs 450 billion set for this auction.
Cut-off yield of all short term government papers also decline slightly. Cut-off yield of 3-month treasury bills was fixed at 5.9017 percent, fell 4 basis points, with accepted bids worth Rs 148.376 billion (realized amount). Bids amounting to Rs 266.182 billion were accepted for 6-months at 5.9258 percent declined 6 bps. While, cut-off yield of 12-month t-bills decreased 3 bps to 5.9598 percent and bids worth Rs 105.8 billion were accepted.