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SBP raises Rs55.95bn through PIB auction, yields drop by up to 15bps

SBP raises Rs55.95bn through PIB auction
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March 13, 2024 (MLN): The State Bank of Pakistan (SBP) raised Rs55.95 billion against a target of Rs190bn through the sale of fixed-rate Pakistan Investment Bonds (PIBs).

In today’s auction, the offered amount totaled Rs253.55bn for the 3-year, 5-year and 10-year PIB, while no bids were received for the 15, 20, and 30-year PIB.

The central bank picked up Rs34.965bn for 3 years, Rs10.833bn for 5 years, and Rs558m for 10-year bonds through competitive bids.

In addition to the competitive bids, SBP picked up Rs9.862bn from non-competitive bids, taking the total amount raised to Rs55.95bn.

The cut-off yields stood at 16.78%, 15.49%, and 14.35% for the 3-year, 5-year, and 10-year periods, respectively.

Compared to the last PIB auction held on February 14, 2024, the yields for the 3-year, 5-year, and 10-year PIBs have all inched lower by 2bps, 6bps, and 15bps, respectivel

The persistent decline in auction yields is due to strengthened hopes for a rate cut soon after inflation slowed to a 20-month low for February.

To note, in that auction, SBP raised Rs85.343bn against a target of Rs125bn through the sale of PIBs, and the yields inched up by up to 5bps.

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Posted on: 2024-03-13T18:33:02+05:00