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d Auction of Treasury Bills In this exercise, participants will be divided into their groups. Each group will act as a bidder in auction trying

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d Auction of Treasury Bills In this exercise, participants will be divided into their groups. Each group will act as a bidder in auction trying to purchase T-Bills Bidders have the information about the last cut-off yield and the current liquidity situation in money market . They also know their forthcoming maturities and expected inflows. They will also be provided an auction target Each bidder (group) will ill out a tender form for the purchase of T-Bills. For simplicity, only one bid of 6 month will be filled by each group. Instructor after receiving all bids, will sort these bids and make a bid report and finally announce a cut-off yield. . Bidders will be asked to explain their quoted prices. Information available to all bidders . Target for the auction is SAR2, 500 million. aST Tim Last cut-off yield for 6 month SAMA Bills was 3.95% Money Market was very tight in the last couple of weeks. However, from the last week, it started to ease. . No discounting was reported yesterday and overnight rate came down to 5% compared to 6.5%last week Market is expected to ease further, in the wake of forthcoming maturities of Government Sukuk and Market loan during next week. Inflation rate is expected to remain stable around 7% for entire year d Auction of Treasury Bills In this exercise, participants will be divided into their groups. Each group will act as a bidder in auction trying to purchase T-Bills Bidders have the information about the last cut-off yield and the current liquidity situation in money market . They also know their forthcoming maturities and expected inflows. They will also be provided an auction target Each bidder (group) will ill out a tender form for the purchase of T-Bills. For simplicity, only one bid of 6 month will be filled by each group. Instructor after receiving all bids, will sort these bids and make a bid report and finally announce a cut-off yield. . Bidders will be asked to explain their quoted prices. Information available to all bidders . Target for the auction is SAR2, 500 million. aST Tim Last cut-off yield for 6 month SAMA Bills was 3.95% Money Market was very tight in the last couple of weeks. However, from the last week, it started to ease. . No discounting was reported yesterday and overnight rate came down to 5% compared to 6.5%last week Market is expected to ease further, in the wake of forthcoming maturities of Government Sukuk and Market loan during next week. Inflation rate is expected to remain stable around 7% for entire year

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