The federal government Wednesday raised Rs 631 billion through auction of short term government papers. The State Bank of Pakistan (SBP) conducted auction for the sale of 3-month, 6-month and 12-month Market Treasury Bills (MTBs) on February 15, 2017 and received bids amounting to Rs 751.566 billion with a realised amount of Rs 731.321 billion. Bids worth Rs 374 billion were received for 3-month T-bills, Rs 222.6 billion for 6-month and 12-month MTBs fetched bids amounted to Rs 154.815 billion.
The federal government borrowed some Rs 649.416 billion (realized value Rs 630.875 billion) through sale of MTBs. The borrowed amount is slightly higher than tentative target of Rs 550 billion set for this auction. Bids amounting to Rs 283.06 billion (realized amount) were accepted for 3-month and its cut-off yield set at 5.9463 percent. Cut-off yield of 6-month t-bills was remained stable at 5.9896 percent and some Rs 204.561 billion were borrowed. Bids worth Rs 143.254 billion were accepted at 5.9935 percent for 12-months bills.