PIB Auction Result: Cut Off Yields decline as SBP Picks up Rs.178 Billion

October 30, 2019 (MLN): Cut off yields in the PIB auction conducted by the State Bank of Pakistan (SBP) decreased by up to 115 basis points as SBP picked up Rs.177.87 billion for 3, 5 and 10 years.

Auction target was Rs.150 billion out of which Rs.100 billion was for fixed rate PIBs while Rs.50 billion was for floating rate PIBs.

The SBP picked up Rs.126.02 Billion in fixed rate PIBs while it picked up the remaining Rs.51.85 billion in floating rate bonds.

Cut off yield for the 3Y PIB decreased by 115 basis points to 11.80 percent, 5Y decreased by 90 basis points to 11.60 percent while the 10Y yield decreased by 89.83 basis points to 11.35 percent.

The SBP received bids worth Rs.146.268 billion for 3y, Rs.120.615 billion for 5Y and Rs.125.541 billion for 10Y out of which it accepted Rs. Rs.43 billion for 3Y, Rs.32.350 for 5Y and Rs.33 billion for 10Y. The solitary bid for the 20Y PIB was rejected.

In the 10Y floating rate bond auction, SBP received bids worth Rs. 198.157 billion with bids ranging between 102.5525 - 100.1952 out of which it accepted Rs.51 billion at 102.2282.

In addition the SBP picked up Rs.18.14 billion in the non-competitive auction and through short-selling.

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