PIB Auction Result: SBP raises Rs.121.18 Billion as yields go up

February 4, 2020 (MLN): Cut off Yields for 3, 5 and 10 years PIB shot up by 30, 20 and 10 basis points in the latest PIB auction conducted by the SBP, as fears grew of inflationary pressure continuing and monetary easing looking likely to be postposed till second half of CY20.

In the auction conducted on Tuesday, the SBP sold PIBs worth Rs.121.18 billion in fixed and floating rate instruments.

Out of the amount raised, Rs.60.65 Billion was in fixed rate bonds while the remaining Rs.60.53 Billion was in floating rate Bonds.

In the fixed rate bond auction, the SBP received bids worth Rs.126.83 billion out of which Rs.41.45 billion was for 3 year, Rs.49.22 billion was for 5 year and Rs.34.660 was for 10 years. The SBP accepted Rs.19.60 billion for 3 years, Rs.29.67 billion for 5 year and Rs.10.21 billion for 10 years. The Bids for the 20 year PIBs were rejected.

Cut off Yields for 3, 5 and 10 year PIBs increased to 12.05, 11.40 and 11.00 percent.

In the 10 year Floating Rate PIB auction, the SBP received bids worth Rs.82.411 Billion with quotes ranging between 101.9252 - 100.0296, out of which the SBP accepted Rs.60.411 billion at a cut off price of Rs.101.2532

In addition to this, the SBP picked up another Rs.1.294 billion in the non-competitive Auction.

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