State Bank of Pakistan updated the Auction Calendar for MTB, PIB (Fixed and Floating) by releasing its Auction schedule for December 2018.
During the final quarter of 2018 the SBP aims to raise Rs 4,900 Billion against a maturing Amount of Rs 4,449.793 Billion.
Oct – Dec 2018 Auction Target Summary
Instrument
Auction Target *
Maturing Amount *
Treasury Bills
4,600.000
4,449.793
PIB (Fixed Rate)
150.000
48.341
PIB (Floating Rate)
150.000
–
Total
4,900.000
4,449.793
* Amount in Rs Billion
Of the maturing T-Bill amount, Rs. 3,242.497 billion is due in the second week of October. With the SBP raising the Policy rate by 100 basis points, it should see sufficient interest in the 3 month (84 Day) T-Bill to meet the auction target of Rs.3,000.00 Billion.
However, with reports that the IMF has recommended the interest rates be moved into double digits, the longer term instruments are unlikely to witness much participation.
There have been no successful auctions for the 1 year T-bill since Sep 27, 2017, the SBP has conducted 25 MTB auctions during the period and only received bids for the 1Y MTB on two occasions.
