SBP raises over Rs788bn through floating rate PIBs

December 11, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction for floating rate Pakistan Investment Bonds on Wednesday in which it sold Rs788.14 billion for 5 and 10 years semiannual bonds against a target of Rs700bn.

The cut-off price stood at 96.6861 for 5-year bond, and 92.4045 for the 10-year bond, while bids were rejected for 2-year bonds.

That is an annual yield of about 14.77% for the 5-year bond and 14.27% for the 10-year bond, if held till maturity.

Comparatively, the yield for both tenures of bonds has dropped by 52bps.

SBP received bids totaling Rs1.3 trillion, indicating an extremely high participation.

The total sum raised represents raised through Rs781.45bn through competitive bids and Rs6.69bn through non-competitive bids.

To note, the central bank in the last auction held on November 27, 2024 sold PIBs-PFL worth Rs643.57 billion for 5 and 10-year semiannual bonds against a target of Rs300bn.

The cut-off price stood at 96.6877 for the 5-year bond and 92.5462 for the 10-year bond, while bids were rejected for 2-year bonds.

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