SBP raises Rs427bn through PIB auction

April 09, 2025 (MLN):  The State Bank of Pakistan (SBP) conducted an auction on Wednesday, raising Rs427.13 billion through the sale of Pakistan Investment Bonds (PIBs) against a target of Rs350bn.

The auction witnessed strong participation, with total bids amounting to Rs887.64bn. 

The SBP received bids worth Rs120.25bn for the 2-year tenor, Rs165.84bn for the 3-year, Rs306.43bn for the 5-year, Rs287.62bn for the 10-year, and Rs7.5bn for the 15-year bond.

Out of these, it accepted Rs37bn from the 2-year, Rs38bn from the 3-year, Rs93.18bn from the 5-year, and Rs247.62bn from the 10-year tenor, while rejecting all bids for the 15-year bond.

Cut-off yields stood at 11.94% for the 2-year bond, 11.88% for the 3-year, 12.34% for the 5-year (down 3 bps), and 12.79% for the 10-year bond (no change). 

In addition to the competitive auction, the SBP raised Rs11.33bn through the non-competitive segment, bringing the total amount accepted to Rs427.13bn.

To note, the central bank in the last auction held on March 12, 2025,  sold PIBs worth Rs15.82 bn against a target of Rs350bn.

Bids for the 2-year and 3-year bonds were rejected. The cut-off yield for 10-year was 12.79% while the 5-year yield 12.3745%.

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