Karachi, July 7, 2023 – In a bid to meet its budgetary requirements, Pakistan has announced plans to raise Rs9.9 trillion through the auction of securities over the next three months.
(more…)Tag: Market Treasury Bills
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SBP Sells Treasury Bills Worth Rs2.3 Trillion
On May 31, 2023, the State Bank of Pakistan (SBP) conducted an auction where it sold market treasury bills worth Rs2.3 trillion.
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SBP invites applications for primary dealers of treasury bills
KARACHI: The State Bank of Pakistan (SBP) has announced its invitation for applications from eligible institutions to become primary dealers of treasury bills. This move aims to enhance the efficiency and effectiveness of the government securities market.
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Pakistan raises Rs1.66 trillion through T-bill auction
KARACHI: The government of Pakistan on Wednesday raised around Rs1.66 trillion through auction of treasury bills for deficit financing and repayment of maturity.
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Govt. to borrow Rs4,100 billion through sale of MTBs
KARACHI: The government has announced to borrow around $s4,100 billion through auction of market treasury bills (MTBs) during three months in order to meet budget financing.
The State Bank of Pakistan (SBP) on Monday issued schedule for the auction of three-, six- and 12-month treasury bills.
Out of scheduled sale of Rs4,100 billion treasury bills, an amount of Rs3,453 billion for the payment of maturities during the period of May – July 2021.
The SBP to auction the treasury bills on May 05, May 19, June 02, June 16, June 30, July 14 and July 28 of the current year.
The SBP set a target of Rs1,000 billion for the sale of 3-month treasury bills, Rs1,500 billion for the sale of six-month bills and Rs1,600 billion for the sale of 12-month treasury bills during May – July 2021.
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SBP sells Rs478 billion worth treasury bills through auction
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.
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SBP sells treasury bills worth Rs2,212 billion in auction
KARACHI: State Bank of Pakistan (SBP) has raised Rs2,212 billion for budget financing in an auction of market treasury bills.
The SBP on Thursday conducted auction of 3-, 6 and 12-month Market Treasury Bills (MTBs).
The SBP received bids of Rs2,238 billion at face value of Rs2,326 billion in all three maturities.
The central bank accepted bids at Rs2,212 billion at face value of Rs2,297 billion.
The banks are seen more interested in lending in short-term government papers as they offered Rs1,991 billion in three-month MTB at face value of Rs2,054 billion.
The SBP accepted the bids in three-month papers at realized amount of Rs1,978 billion at face value of Rs2,040 billion. The cut-off yield in three-month papers increased to 13.7499 percent as compared with previous auction of Rs12.7422 percent.
The SBP also accepted bids at face value amounting Rs144.21 billion and Rs112.72 billion in 6-month and 12-month treasury bills respectively. The cut-off yield in these two instruments recorded at 13.95 percent and 14.1 percent, respectively.
Banking experts said that the financial institutions were more aggressive in lending their money in government papers considering safe investment and high returns.
The recent policy rate hike also attracted the commercial banks to enhance their exposures in government papers.
The experts said that the reason to raise huge amount from private banks was government decision for not borrowing any more from the central bank.
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Government to borrow Rs6,300 billion through auction of Market Treasury Bills in first quarter
KARACHI: The government likely to borrow an amount of Rs6,300 billion from commercial banks through auction of market treasury bills (MTBs) during first quarter (July – September) of current fiscal year.
According to auction target for MTBs issued by State Bank of Pakistan (SBP), the amount would be raised through seven auctions during the period.
The government borrows from commercial banks through sale of commercial papers for budget financing.
The details of auctions showed the government would borrow primarily to repay the matured amount. The details further showed that out of Rs6,300 billion, an amount of Rs5,065 billion would be spent on repayment against matured amount.
The remaining amount of Rs1,234.55 billion would be utilized for budget financing.
Banking analysts said that the government had decided to change the borrowing pattern. During the past fiscal year most of the borrowings were made through central bank. However, the government under IMF loan program agreed not to borrow from the SBP.
The auction target showed that an amount of Rs300 billion would be raised through sale of Pakistan Investment Bonds (PIBs) of fixed rates.
While, an amount of Rs400 billion would be raised through sale of PIB (floating rates).
Analysts said that the banks were taking more interest in government maturities due to frequent increase in policy rate by the SBP. The banking sector is anticipating more hike in interest rate by the SBP during remaining months of current year.
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SBP raises record Rs3,100 billion through MTBs auction at cut-off yield higher than key policy rate
KARACHI: The State Bank of Pakistan (SBP) has raised record huge amount of Rs3,100.71 billion through an auction of Market Treasury Bills (MTBs) at a cut-off yield much higher than the key policy rate of 12.25 percent.
The central bank on Wednesday received bids in 3- and six-month treasury bills worth Rs3,176.56 billion at face value of Rs3,268.59 billion. The SBP has not received bids for 12-month treasury bills.
The SBP accepted bids of Rs3,100 billion at face value of Rs3,190 billion. The central bank accepted Rs3,099 billion against three-month MTBs at face value of Rs3,188.99 billion at cut-off yield of 12.7495 percent. For benchmark six-month treasury bills an amount of Rs1.41 billion were accepted at face value of Rs1.5 billion and at cut-off yield of 12.80 percent.
The amount raised was much higher than the target set for this auction. The central bank had set Rs600 billion target for the auction.
Market analysts said that banks were still anticipating further increase in interest rate in next monetary policy announcement.
In the recent monetary policy the SBP increased the key policy rate by 150 basis points to 12.25 percent for next two months starting May 21, 2019.
The SBP conducts auction of securities for the government to meet budgetary deficit. The fiscal deficit has been increased to 5 percent during July – March 2018/2019, which is already cross the target of 4.9 percent for full fiscal year.
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SBP sells T-Bills worth Rs560bn at 11.249pc cut-off yield
KARACHI: State Bank of Pakistan (SBP) has sold treasury bills amounting Rs560 billion at cut-off yield at 11.2491 percent, much above the key policy rate of 10.75 percent.
The SBP on Wednesday offered bids to auction Market Treasury Bills (MTB) of three-, six- and 12-month maturities.
The SBP received bids of Rs560 billion at face value of Rs574.186 billion in three-month MTBs. However, the SBP did not receive bids in other papers.
The central bank accepted all the bids in three-month maturities at cut-off yield of 11.2491 percent.
The high cut-off yield indicates further rise in key policy rate to be announced this month.
In its monetary policy announcement on March 29, 2019 the SBP increased key policy rate by 50 basis points to 10.75 percent.
Banking experts said that the financial institutions were only interested in short term maturities as those were anticipating further hike in policy rate in upcoming monetary policy announcement.
The SBP has set a target of Rs1,200 billion for this auction in order to help the government in meeting budgetary financing.
However, the central bank could only raise Rs560 billion.
SBP sells treasury bills worth Rs415.72 billion at above 11pc cut-off yield