Government raises PKR 308 billion through T-bill auction – Alfalah Securities Limited

Karachi, July 12, 2012 (PPI-OT): Government of Pakistan has borrowed PKR 307.916 billion on Wednesday through auction of Market Treasury Bills (MTBs) to fund the budgetary deficit.

According to Alfalah Securities Limited, the government had set a target of PKR 225 billion and received bids worth of PKR 416.326 billion. The cut off yields eased off slightly where the cut-off rates of 3M, 6M and 12M stood at 11.8742%, 11.9195% and 11.9396% witnessing a decline of 4.59 bps, 2.25 bps and 1.26 bps respectively. The high government borrowing has remained a concern for the Central Bank due to which Alfalah Securities Limited expects that the Discount rate would be kept unchanged at 12% in the upcoming monetary policy despite positive real rates and tamed inflation in the recent months.