xercise on Simulated Auction of Treasury Bills will In this exercise, participants will be divided into their groups. Each group act as a bidder in auction trying to purchase T-Buills 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 fill 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 tion available to all bidders Target for the auction is SAR2500 million. VAS ime- Last cut-off yield for6 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 * Apply the treasury bills discounting and what is its annualized yield? xercise on Simulated Auction of Treasury Bills will In this exercise, participants will be divided into their groups. Each group act as a bidder in auction trying to purchase T-Buills 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 fill 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 tion available to all bidders Target for the auction is SAR2500 million. VAS ime- Last cut-off yield for6 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 * Apply the treasury bills discounting and what is its annualized yield
