SBP raises Rs368bn through PIB auction

November 20, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Wednesday in which it sold Pakistan Investment Bonds (PIBs) worth Rs367.95 billion against Rs300bn target.

Cut off yields stood at 13.05% (-19bps) for 2-year, 12.50% (unchanged) for 3-year, 12.70% (-9bps) for 5-year, and 12.838% (-14bps) for 10-year bond.

Compared to the secondary market, the cut off yields were higher by 12bps, 13bps, 33bps, and 68bps for 2, 3, 5, and 10-year bonds, respectively.

Total amount offered was Rs892.51bn out of which the SBP accepted Rs367.95bn.

The SBP received bids worth Rs385.12bn for 2-year, Rs44.7bn for 3-year, Rs392.75bn for 5-year, and Rs69.94bn for 10-year, out of which it accepted Rs132.67bn for 2-year, Rs9.9bn for 3-year, Rs145.8bn for 5-year, and Rs32.23bn for 10-year

In addition, the SBP picked up Rs29.65bn from the non-competitive auction and Rs17.7bn from short-selling, making the total amount accepted Rs367.95bn.

To note, the central bank in the last auction held on October 17, 2024 sold PIBs worth Rs197bn against a target of Rs200bn.

Cut-off yields for 2, 3, 5, and 10 years were 13.24%, 12.50%, 12.79%, and 12.98%.

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