April 30, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Tuesday in which it sold Pakistan Investment Bond – Floating Rate (PIB-PFL) semiannual Rs193.546 billion for 5 and 10 years against a target of Rs280bn.
The cut-off price for the 5-year PIB-PFL semiannual stood at Rs95.9152, while for the 10-year one, it stood at Rs93.8371.
SBP received bids worth Rs357.5bn for PIB-PFL semiannual and Rs1.895bn for PIB-PFL quarterly. Out of these, the central bank accepted Rs193.546bn for the semiannual floaters, while none were accepted for the quarterly PIB.
The settlement date for the successful bids is May 02, 2024.
The amount raised through PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs132.471bn and Rs61.075bn, respectively.
The total sum raised through 5-year and 10-year semiannual bonds represents Rs179.95bn raised by SBP through competitive bids and Rs13.596bn raised through non-competitive bids.
The target for the PIB-PFL semiannual was to raise Rs160bn through the sale of 5-year and 10-year PIB, Rs80bn each.
In the case of PIB-PFL quarterly, it was to raise Rs60bn each with the sale of 2-year and 3-year bonds.
To note, the central bank in the last auction held on April 17, 2024 sold PIBs-PFL worth Rs353.23 against a target of Rs220bn.
The cut-off price for the 5-year PIB-PFL semiannual stood at Rs95.9376, while for the 10-year one, it stood at Rs93.8167.
When compared with today's cut-off price, it becomes evident that yields have increased, resulting in a slight decrease in the cut-off price.
Yields have ticked higher today after the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) in its meeting held yesterday, decided to keep the policy rate unchanged at 22% for the seventh consecutive meeting.
