June 03, 2019 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Monday in which it sold Market Treasury Bills (MTB) worth Rs.111.35 Billion for 3 and 12 months.
Earlier, the SBP had received bids worth Rs.205.50 Billion for 3 and 12 months while no bids were made for the 6 month Treasury. The auction target was Rs.500 Billion against a maturing amount of Rs.15.044 Billion.
However, the bid were mostly concentrated in the short term, 3 month, treasury bill with the 12 month MTB getting only Rs.2.50 Billion in bids.
Out the offered amount the SBP accepted Rs.102.50 Billion for 3 months with the cut off yield of 12.7493 percent and Rs.500 Million for 12 months at a cut off yield of 13.15 percent.
Notwithstanding the relatively small amount accepted, this is the first successful auction of a 12 month T-Bill since September 27, 2017.
Including the non-competitive bids, the total accepted amount increased to Rs.111.35 Billion.
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