PIB yields plunge by up to 335bps

September 19, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Thursday in which it sold Pakistan Investment Bonds (PIBs) worth Rs110.96 billion.

The target was to raise Rs200bn while the maturity amount was Rs534bn.

Cut off yields stood at 13.98% for the newly issued 2-year bond, 12.8995% (-335bps) for 3-year bonds, and 13.4% (-190bps) for the 5-year fixed bonds. Moreover, the cut-off yield for the 10-year bonds stood at 13.2%.

Total amount offered was Rs630.865bn out of which the SBP Rs110.96bn.

The SBP received bids worth Rs260.5bn for 2-year papers, Rs155.96bn for 3-year papers, Rs183.53bn for 5-year papers, and Rs30.88bn for the 10-year bonds.

Out of this, the central bank accepted Rs10bn for 2-year, Rs1bn for 3-year, Rs1.1bn for 5-year, and Rs12.38bn for 10-year, while the remaining Rs58.78bn was picked up via non-competitive bids.

Furthermore, short selling amounted to Rs27.7bn, making the total amount accepted Rs110.96bn.

It is important to note that in yesterday's auction, the central bank rejected bids for both Market treasury bills and floating rate PIBs.

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