July 24, 2019 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold PIBs worth Rs.309.415 Billion for 3, 5 and 10 years in Fixed and Floating rate bonds.
Cut off Yields for the Fixed Rate Bonds increased by 55 basis points to 14.25 percent for 3 years, remained the same at 13.80 percent for 5 years while the 10 year Cut off declined by 15 basis points to 13.55 percent.
The 10 year Floating Rate PIB was accepted at a margin of 75 basis points over the benchmark.
Commenting on today's auction and the wayward yield curve Economist Muzammil Aslam said “The Ministry of Finance has provided a trade-off between defensive & growth story. If you are negative on Economy get the short-dated paper and If you believe in inflation will set-off and economy is all set to move towards reflation from stagflation get long-dated bond. The inverted yield curve is hinting Reflation will be back soon.”
Earlier, the SBP had received bids worth Rs.699.07 Billion for the fixed Rate PIB’s and Rs.128.150 Billion for the floating rate bond.
Auction target was Rs.100 billion each for fixed and floating rate PIBs.
Out of the Rs.168.592 Billion for the 3 Year PIB, SBP accepted Rs.120.437 Billion, for the 5 Year PIB it accepted Rs.55.415 Billion out of Rs.268.747 Billion while it accepted Rs.25.201 Billion from Rs.261.73 Billion for 10 Years.
In the floating rate auction, it accepted Rs.84.150 Billion.
In addition to the above, the SBP also picked up Rs.24.209 Billion in the non-competitive bids and through short selling making the total face value Rs.309.415 Billion.
Auction Result: SBP Sells PIBs Worth Rs.309.415 Billion
July 24, 2019 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold PIBs worth Rs.309.415 Billion for 3, 5 and 10 years in Fixed and Floating rate bonds.
Cut off Yields for the Fixed Rate Bonds increased by 55 basis points to 14.25 percent for 3 years, remained the same at 13.80 percent for 5 years while the 10 year Cut off declined by 15 basis points to 13.55 percent.
The 10 year Floating Rate PIB was accepted at a margin of 75 basis points over the benchmark.
Commenting on today's auction and the wayward yield curve Economist Muzammil Aslam said “The Ministry of Finance has provided a trade-off between defensive & growth story. If you are negative on Economy get the short-dated paper and If you believe in inflation will set-off and economy is all set to move towards reflation from stagflation get long-dated bond. The inverted yield curve is hinting Reflation will be back soon.”
Earlier, the SBP had received bids worth Rs.699.07 Billion for the fixed Rate PIB’s and Rs.128.150 Billion for the floating rate bond.
Auction target was Rs.100 billion each for fixed and floating rate PIBs.
Out of the Rs.168.592 Billion for the 3 Year PIB, SBP accepted Rs.120.437 Billion, for the 5 Year PIB it accepted Rs.55.415 Billion out of Rs.268.747 Billion while it accepted Rs.25.201 Billion from Rs.261.73 Billion for 10 Years.
In the floating rate auction, it accepted Rs.84.150 Billion.
In addition to the above, the SBP also picked up Rs.24.209 Billion in the non-competitive bids and through short selling making the total face value Rs.309.415 Billion.
Copyright Mettis Link News
29108
Data is delayed by 20 minutes
Data is delayed by 20 minutes
To see more commodities please register for our portal
Top 5 things to watch in this week
Charts
Stay Connected
Read Next
MG Morning Breeze: Updates to Skim before Market
MG Morning Breeze: Updates to Skim before Market
Oil prices surge near $90 following Israel’s alleged strikes in Iran
Saudi Arabia needs oil price near $100 to breakeven: IMF