SBP raises Rs186.55bln

KARACHI: The State Bank of Pakistan on Wednesday raised Rs186.48 billion in an auction of market treasury bills (MTBs) amid an aggressive participation from the banks to invest in the government papers.

The central bank accepted the amount on face value of Rs196.73 billion in 3-, 6- and 12-month maturities against offered amount of Rs467.19 billion.

The target for the auction was Rs250 billion. Analysts said the acceptance of bids lower than target amount showed ease in government needs for budget financing.

According to the latest auction, the long term maturities are more attractive. The SBP received bids Rs114.41 billion in 3-month, Rs49.16 billion in 6-month and Rs303.6 billion in 12-month treasury bills.

The cut-off yield, however, stood flat in the latest auction as compared with held on February 3. The yield for the latest auction was at 6.2144 percent, 6.2239 percent and 6.2419 percent against previous figures of 6.2591 percent, 6.2665 percent and 6.2758 percent for 3-, 6- and 12-month maturities, respectively.