KARACHI
The institutional investors seem to have developed a strong confidence in the federal government that borrowed on Wednesday almost all of the hundreds of billions of rupees offered by the primary dealers, primarily the banks.
The central bank rose over Rs 291.301 billion for the cash-strapped federal government through auctioning Market Treasury Bills of 3-, 6- and 12-month maturity.
The State Bank, in a rare case, accepted the entire amount offered by the bidders, giving an impression that how funds-starved the government was to cater its non-development running of the government expenditure.
On the other hand, the SBP’s 11 primary dealers, including Feysal Bank, Habib Bank, NIB Bank, JS Bank, National Bank of Pakistan, United Bank, Bank Alfalah, MCB Bank, Citibank NA (Pakistan Operations), Pak Oman Investment Company and Standard Chartered Bank (Pakistan), opted to invest in the long-term government papers as most of their bids, Rs 150.93 billion, were made against the 12-month maturities.
The bidders offered Rs 78.428 billion against 6-month government securities while bid the least, Rs 62.217 billion, in short-term t-bills of three-month.
In return, the State Bank only rejected bids worth Rs 275 million that too of three-month maturity and accepted the balance having a face value of Rs 291.301 billion.
The cut-off yield for the money borrowed stood at 9.9564, 9.9791 and 9.9900 against 3-, 6- and 12-month sovereign guarantees. While the weighted average yield for the t-bills auctioned was 9.9564, 9.9791 and 9.9898.
