KARACHI: State Bank of Pakistan (SBP) raised an amount of Rs415.72 billion through sale of Market Treasury Bills (MTBs) at an auction held on Wednesday.
The SBP received bids for three- and six months securities at realized value of Rs2,730 billion at face value of Rs2,799 billion. The central bank did not receive bids for 12-month maturities.
The bids were mainly received in 3-moth MTBs at realized amount of Rs2,729 billion at face value of Rs2,798.74 billion. The central bank received bids for six-month treasury papers of Rs758 million at face value of Rs800 million.
The SBP accepted 3-month maturities at realized value of Rs415.58 billion at face value of Rs426.103 billion. The cut-off yield was at 11 percent.
The central bank accepted bids in six-month maturities of Rs142.14 million at face value of Rs150 million. The cut-off yield was at 11.0899 percent.
The SBP raised the funds above the auction target of Rs350 billion.
The cut-off yield is higher than the key policy rate of 10.75 percent.
Experts said that the banks were anticipating further hike in interest rate in upcoming policy. The expectation of increase in interest rates showed the interest of banks in short-term maturities.