SBP slashes PIB yields further

October 17, 2024 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Thursday in which it sold Pakistan Investment Bonds (PIBs) worth Rs197.39 billion against Rs200bn target.

Cut-off yields fell to 13.24% (-74bps) for 2-year, 12.50% (-40bps) for 3-year, 12.79% (-61bps) for 5-year, and 12.98% (-22bps) for 10-year bond.

Total amount offered was Rs658.08bn out of which the SBP accepted Rs197.39bn.

The SBP received bids worth Rs139bn for 2-year, Rs107.56bn for 3-year, Rs313.06bn for 5-year, and Rs98.47bn for 10-year, out of which it accepted Rs22bn for 2-year, Rs7.96bn for 3-year, Rs55.15bn for 5-year, and Rs61bn for 1- year

In addition, the SBP picked up Rs34.73bn from the non-competitive auction and Rs16.55bn from short-selling, making the total amount accepted Rs197.39bn.

To note, the central bank in the last auction held on September 19, 2024 sold PIBs worth Rs111bn against a target of Rs200bn.

Cut-off yields for 2, 3, 5, and 10 years were 13.98%, 12.90%, 13.40%, and 13.20%.

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