SBP raises Rs342bn in PIB Auction

July 16, 2025 (MLN): The State Bank of Pakistan (SBP) has secured Rs342.32 billion in today's auction of Fixed Rate Pakistan Investment Bonds (PIBs).

The auction offered a mix of fixed-rate and zero-coupon instruments across five tenors: 2-Year, 3-Year, 5-Year, 10-Year, and 15-Year. Notably, bids for the 15-year tenor were rejected entirely.

The highest acceptance came from the 5-Year bonds, which accounted for  Rs254.84bn, indicating strong investor interest in mid-term instruments.

Cut-off yields showed a rising trend with the 2-Year bond settled at 10.8480%, the 3-Year at 11.0500%, the 5-Year at 11.3900%, and the 10-Year reaching as high as 12.2000%.

The 15-year tenor was rejected, as bids in this ultra-long maturity fell within a steeply discounted price range of 12.42–16.81, prompting the SBP to decline all offers, which highlighted its reluctance to lock in long-term borrowing at such high costs.

Overall, the auction represents upward yield pressure, especially in longer tenors. The 10-Year PIB maintained its cut-off yield at 12.20%, which shows rising investor expectations for future inflation and monetary policy tightening.

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