The federal government Wednesday raised Rs 360 billion through the auction for short-term government papers. The State Bank of Pakistan (SBP), on April 26, 2017, conducted the auction for the sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs) and received bids amounting to Rs 407.715 billion with a realized amount of Rs 399.156 billion.

Bids worth Rs 275.630 billion were received for 3-month T-bills, Rs 97.086 billion for 6-month while 12-month bills fetched bids amounting to Rs 35 billion. The federal government accepted bids amounting to Rs 366.616 billion or realized value of Rs 360.028 billion through the auction for 3-, 6- and 12-month short-term papers. The borrowed amount is higher than the tentative borrowing target of Rs 300 billion for this auction. This amount included Rs 299.690 billion of maturity and an additional requirement of Rs 310 million.

Bids amounting to Rs 269.813 billion (realized amount) were accepted for 3-month at 5.9910 percent cut-off yield. Some Rs 84.553 billion were borrowed at 6.0109 percent against the sale of 6-month t-bills. Some Rs 5.661 billion were raised through the auction for 12-month T-bills at 6.0273 percent.

Copyright Business Recorder, 2017