April 16, 2020 (MLN): The State bank of Pakistan (SBP) rejected all bids for the 5 Year Variable Rate Gop Ijara Sukuk at an auction conducted on Wednesday.
According to data released by the SBP it received bids worth Rs.176.897 billion against an auction target of Rs. 75 billion at a range of margin between -225 to +25 basis points over the benchmark rate.
The SBP rejected all bids.
Earlier the SBP MPC had reduced the policy rate by 200 basis points, with the benchmark being the 6 month Weighted Average Yield, it would make little sense to issue at a higher rate as the settlement date is before the next MTB auction, in which the cut off yields would decrease.
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