RECORDER REPORT

KARACHI: A very thin participation was witnessed in the auction of Government of Pakistan Market Treasury Bills (MTBs) held on Wednesday.

The State Bank of Pakistan (SBP), on September 26, 2018, conducted auction for the sale of 3-month, 6-month and 12-month T-bills and received bids amounting to Rs1.25 billion with realized amount of Rs1.227 billion as against the target of Rs350 billion.

All bids were received for 3-month, while no bids was submitted for 6-month and 12-month. Out of total received bids, the federal government borrowed Rs750 million with total realized value of Rs737 million at a cut-off yield of 7.7500 percent.

Analysts said that banks are expecting a further hike in key policy rate in the next monetary policy to be announced on September 29, 2018 therefore they have adopted a wait and see policy.