Bid worth Rs 525.204 billion were received for 3-month tenors and Rs 84.1 billion for 6-month MTBs. However, 12-month T-bills fetched lowest bids as financial institutions seemed reluctant to invest at lower interest rate. Bids amounting to Rs 5 billion were received for 12-month government securities.
The federal government borrowed higher than target and accepted bids amounting to Rs 602.804 billion with a realized value of Rs 593.38 billion against the target of Rs 550 billion.
The cut-off yield for 3-month Treasury Bills remained stable at 5.9910 percent with accepted bids worth Rs 516.852 billion (realized amount). Bids amounting to Rs 76.798 billion were accepted for 6-month at a cut-off yield of 6.0109 percent. All the bids of 12-month tenors were rejected by the federal government.
Copyright Business Recorder, 2017