KARACHI: The government has borrowed an amount of Rs474.8 billion through sale of market treasure bills on Wednesday.
The State Bank of Pakistan (SBP) said that bids were invited for the auction of 3-, 6- and 12-month maturities. The auction target was Rs450 billion.
The auction witnessed aggressive participation of the banks as the central bank received total bids amounting Rs918.47 billion (face value) for all the three maturities.
The central bank accepted bids worth Rs474.8 billion in the sale of treasury bills.
The SBP accepted Rs113.8 billion against offered amount of Rs490.9 billion in three-month treasury bills. The cut-off yield for the paper was 7.1292 percent.
The central bank accepted bids of Rs192 billion against the offer of Rs239.57 billion in six-month treasury bills. The cut-off yield was at 7.18 percent.
The SBP accepted Rs169 billion against the offer of Rs188 billion in 12-month treasury bills. The cut-off yield was at 7.3090 percent.
Experts said that the banks were desperate to invest in government papers due to sufficient liquidity available with them.
The government borrowed funds through sale of treasury bills for budget financing.