SBP raises Rs540bn through floating rate PIBs

November 13, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction for floating rate Pakistan Investment Bonds on Wednesday in which it sold Rs540.03 billion for 5 and 10 years semiannual bonds against a target of Rs300bn.

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 14.29% for the 5-year bond and 14.82% for the 10-year bond, if held till maturity.

While it is a current yield of about 13.80% for the 5-year bond and 14.44% for the 10-year bond.

SBP received bids totalling Rs709.39bn.

The total sum raised represents raised through Rs530.22bn through competitive bids and Rs9.81bn through non-competitive bids.

To note, the central bank in the last auction held on October 30, 2024 sold PIBs-PFL worth Rs529bn against a target of Rs500bn.

The cut-off price stood at 96.9831 for 5-year bond and 93.4988 for the 10-year bond, while bids were rejected for 2-year bonds.

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