Government raises Rs 240 billion via MTBs

The federal government Wednesday raised some Rs 240 billion through the auction for short-term government papers. The State Bank of Pakistan (SBP), on November 20, 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 518.254 billion with a realized amount of Rs 482.455 billion.

Bids worth Rs 222.894 billion were received for 3-month T-bills, Rs 108.084 billion for 6-month while 12-month government papers fetched bids amounting to Rs 187.275 billion.

Out of the received bids, the federal government accepted bids amounting to Rs 239.714 billion with a realized value of Rs 288.165 billion through the auction of 3-, 6- and 12-month short-term government papers. The borrowed amounted is lower than the tentative borrowing target of Rs 600 billion for this auction.

Margin on 3-month and 12-month T-bills moved up slightly. Bids amounting to Rs 178.894 billion were accepted for 3-month papers at 13.5899 percent, up 30 basis points (bps).

Some Rs 15.544 billion were borrowed through the auction for 6-month papers. Its cut-off yield remained stable at 13.2899 percent. Some Rs 45.27 billion were raised through the auction for 12-month variety at 13.2499 percent, up 46 bps compared to previous auction.