SBP sets auction target of Rs.5.10 trillion for next three months

February 8, 2021 (MLN): The State Bank of Pakistan (SBP) announced the auction calendar for Jan – Mar 2021 in which it plans to raise Rs.5.10 trillion through the sale of Government Securities.

The amount maturing during the next three months is Rs.4.236 trillion showing a net borrowing by the government of Rs.864 billion.

Out of the maturing amount the Rs.3.949 trillion are maturing short term Treasury Bills while Rs.287 billion is in Fixed Rate PIBs.

Target for short term Market Treasury Bills (MTBs) has been set at Rs.4.30 trillion with Rs.350 billion and Rs.450 billion are expected to be raised from longer term Fixed and floating rate bonds (PIBs).

The central bank issued a heavily revised auction calendar, resetting auction targets and removing tenors from the list of instruments to be issued.

The SBP scrapped 3 and 10 year floating rate PIBs with semi-annual coupon payment as well as the 5 and 10 year floating rate PIBs with quarterly coupon payments.

Auction dates were announced for GOP ijara sukuk’s but amounts weren’t revealed.

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