Auction Result: SBP Sells PIB’s worth Rs.555 Billion

August 21, 2019 (MLN): The State Bank of Pakistan conducted an auction on Wednesday in which it sold PIB’s worth Rs.555.42 Billion for 3, 5 and 10 years.

Out of the amount raised, Rs.513.69 Billion was in fixed rate bonds while the remaining Rs.41.55 Billion was in floating rate Bonds.

Cut off Yields for 5 and 10 years declined by 25 and 40 basis points to 13.55 and 13.1495 percent while the cut off yield for the 3 year PIB remained unchanged at 14.25 percent.

In the Floating Rate Bond issue, the cut off margin was 75 basis points over the benchmark, which is the same as the previous auction.

The SBP had received bids worth Rs.1,034.35 Billion for the fixed income bonds out of which the SBP accepted Rs.414.55 Billion for 3 years, Rs.55.135 Billion and Rs.25 Billion for 5 and 10 years with the bids for the 20 year PIB rejected.

The SBP received bids worth Rs.47.5 Billion for the floating rate bond out of which it accepted Rs.41.5 Billion.

The SBP accepted a further Rs.19 billion in the non-competitive auction and through short-selling making the total accepted amount Rs.555.242 Billion.

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