SBP raises Rs643.6bn through floating rate PIBs

November 27, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction for floating rate Pakistan Investment Bonds on Wednesday in which it sold Rs643.57 billion for 5 and 10-year semiannual bonds against a target of Rs300bn.

The cut-off price stood at 96.6877 for the 5-year bond and 92.5462 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 14.79% for the 10-year bond, if held till maturity.

Comparatively, the yield for the 5-year bond remained largely stable, while the 10-year one witnessed a meager 3bps drop.

SBP received bids totaling Rs1.26 trillion, indicating an extremely high participation.

Out of the total funds raised, Rs631.39bn was through competitive bids, and Rs12.18bn was through non-competitive bids.

To note, the central bank in the last auction held on November 13, 2024 sold PIBs-PFL worth Rs540.03bn against a target of Rs500bn.

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.

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