SBP sells Rs 530 billion worth of Treasury bills

State bank of Pakistan maintained the cut-off yield on three, six months and 12 months treasury bills in an auction held Wednesday.

The central bank had received bids worth Rs 530.8 billion where accepted bids worth Rs 515.32 billion.

The cut-off yield on three months treasury bills remained unchanged at 5.99 percent, selling Rs 432 billion worth of the bills. The central bank sold Rs 83 billion worth of six-month bills and Rs 13 million worth of one year government securities at 6.01 percent and 6.03 percent respectively.

The borrowing has been increased from the central bank following the government completed program with International Monetary Fund. Mainly the borrowing has been made to plug fiscal deficit. During the last fiscal year government borrowed Rs 1 trillion from the central bank as against Rs 791 billion during the corresponding year.