SBP raises just Rs3.66bn against a target of Rs160bn through PIB auction

September 18, 2023 (MLN): The State Bank of Pakistan (SBP) raised only Rs3.66 billion against a target of Rs160bn through the sale of fixed-rate Pakistan Investment Bonds (PIBs).

The central bank picked up Rs1.28bn for 3 years, Rs200 million for 5 years, and Rs100.5m for 10 years.

While no bids were received for the 15, 20, and 30-year PIB.

The cut-off yield was 19.3449%, 16.95%, and 15.25% for 3, 5, and 10 year, respectively.

When compared to the last auction held on August 02, the yield for 3-year PIB remained unchanged, the 5-year PIB saw an increase of 100bps, while the 10-year PIB was accepted after one year.

In addition to this, SBP picked up Rs2.08bn from non-competitive bids, taking the total amount raised to Rs3.66bn.

Interestingly, the central bank received bids worth Rs138.5bn, out of which the SBP accepted a little below 3% of the total.

To note, in the last PIB auction held on August 02, SBP raised Rs71bn, and the cut-off yield for a 3-year PIB was 19.3499%, and for the 5-year PIBs, the cut-off was 15.9500%, while bids were rejected for the 10-year PIBs.

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