By Farooq Awan

The government has raised Rs2.39 trillion through the auction of Market Treasury Bills (MTBs) of various tenors, according to the auction results released by the State Bank of Pakistan. The auction, held on January 7 with settlement scheduled for January 8, covered 1-month, 3-month, 6-month and 12-month MTBs. The total realized amount from competitive bids stood at Rs2,393,534.447 million against a face value of Rs2,554,569.610 million.

Of the total realized amount, Rs255,177.000 million was accepted in 1-month MTBs, Rs520,837.610 million in 3-month MTBs, Rs403,968.000 million in 6-month MTBs, and Rs1,374,587.000 million in 12-month MTBs.

The cut-off yield for 1-month MTBs was set at 10.2000 percent, while the weighted average yield stood at 10.1958 percent. For 3-month MTBs, the cut-off and weighted average yields were both recorded at 10.1501 percent. The 6-month MTBs were accepted at a cut-off yield of 10.1580 percent, with a weighted average yield of 10.0867 percent, while the 12-month MTBs carried a cut-off yield of 10.1590 percent and a weighted average yield of 10.0871 percent.

In addition to competitive bids, non-competitive bids amounting to Rs979,325.680 million were also accepted, taking the total acceptance inclusive of non-competitive bids to Rs3,372,860.127 million in realized value terms.

Out of the accepted non-competitive bids, provincial government participation amounted to Rs30,000.000 million in the 1-month tenor.

The auction was conducted by the Domestic Markets and Monetary Management Department of the State Bank of Pakistan through primary dealers.

 
Credit: INP-WealthPk