PIB Auction Result: SBP Sells PIBs worth Rs.164.60 Billion As Yields Decline

March 4, 2020 (MLN): The State Bank of Pakistan conducted an auction on Wednesday in which it sold PIB’s worth Rs.164.60 Billion for 3, 5, 10 and 20 years in fixed and floating rate bonds.

Cut off Yields for 3, 5 and 10 years decreased by 46, 41 and 15 basis points over the previous auction to 11.5888, 10.99 and 10.85 percent.

In a rare occurrence, the bid for the 20 year PIB was also accepted at 11.7999, the first time since January 2015 that this tenor has seen a successful auction.

The combined auction target was Rs.150 billion against a maturing amount of Rs.389.30 billion.

The SBP received combined bids worth Rs.676.75 billion, out of which it accepted Rs.109.60 Billion in fixed Rate PIBs and Rs.55 Billion for the 10 year floating rate PIB.

In the fixed rate auction, the SBP received bids worth Rs. 243.735 billion for 3 years, Rs.105.675 billion for 5 year, Rs.74.491 billion for 10 year and Rs. 1 billion for 20 year, out of which the central bank accepted Rs.38.35 billion for 3 years, Rs.32.15 billion for 5 years, Rs.38.10 billion for 10 years and Rs.1 billion for 20 years.

In the floating rate bond auction, the SBP received bids worth Rs.251.852 billion out of which the SBP accepted Rs.55 billion at a cut off price of 102.5295.

The SBP accepted an additional Rs.27.90 billion in non-competitive bids and through short selling making the total accepted amount Rs.192.50 billion.

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