Govt raises Rs1.52tr through T-bills auction

Published March 25, 2021
The government on Wednesday raised over Rs1.519 trillion through auction of market treasury bills, but most of the amount was borrowed for the three-month tenure. — AFP/File
The government on Wednesday raised over Rs1.519 trillion through auction of market treasury bills, but most of the amount was borrowed for the three-month tenure. — AFP/File

KARACHI: The government on Wednesday raised over Rs1.519 trillion through auction of market treasury bills, but most of the amount was borrowed for the three-month tenure.

The government received the highest bids of Rs1,538 billion for three-month T-bills and accepted Rs1,130.68bn. The cut-off yield on this paper was reduced by 5 basis points to 7.53 per cent compared to 7.58pc in the previous auction held on March 10, the State Bank of Pakistan reported.

The cut-off yield on benchmark six-month T-bills remained unchanged at 7.8pc while the government raised Rs388.9bn. The bids for this tenure were Rs468.08bn.

All bids (Rs62.8bn) for 12-month were rejected. The total bids for T-bills for this auction were Rs2,042.929bn while the government accepted Rs1,519.582bn.

The auction trend shows that the banks were over-liquid as they were willing to park maximum liquidity in government papers. At the same time, both the government and the investors were on the same page for the short-term three-month T-bill. The investors were cautious over the interest rate that may change upward in the coming months depending upon the intensity of inflationary pressures.

PIBs auction

The government accepted Rs1.150bn for two-year PIBs and rejected all bids for three-year. Total bids for the auction of PIBs were Rs5.95bn. The government also raised Rs2.2bn through PIBs as non-competitive bids.

Published in Dawn, March 25th, 2021

Opinion

Avoid Modi’s nationalist turf
Updated 19 Oct 2021

Avoid Modi’s nationalist turf

It remains the only party with a presence in every Indian state and makes it best equipped to effect the required radical change.
The lamp of guidance
Updated 19 Oct 2021

The lamp of guidance

Those seeking to learn from his example must follow the moral precepts he gave otherwise it is half-hearted devotion at most.

Editorial

Opposition’s chance?
Updated 19 Oct 2021

Opposition’s chance?

What the opposition can do is take advantage of the cleavage between PTI and the establishment, perhaps widen it and leverage it.
19 Oct 2021

Evading tax laws

MERELY 2.5m or 35pc of the 7.2m total registered taxpayers or NTN holders have filed their returns for tax year ...
19 Oct 2021

KCR delays

AS political and bureaucratic stakeholders drag their feet over reviving the Karachi Circular Railway, residents of...
Financial troubles
Updated 18 Oct 2021

Financial troubles

Growing trade gap is fuelling the current account deficit and bringing the already meagre foreign exchange reserves under stress.
18 Oct 2021

Complaint portal

IN a ruling on Thursday, the Mingora bench of the Peshawar High Court held that the Prime Minister’s Performance...
18 Oct 2021

Capital’s master plan

IT is encouraging that on Thursday, the restructured commission formed by the federal cabinet to revise ...