SBP to conduct T-bills buyback auctions

September 26, 2024 (MLN): The State Bank of Pakistan (SBP) will conduct auctions for the buyback of Market Treasury Bills (MTBs) on behalf of the Government of Pakistan, said a circular issued.

The MTBs Rules 1998 provide for the buyback of MTBs by the Government of Pakistan. In this regard, SBP has prescribed the procedure for execution of such buyback transactions.

The central bank will announce the details such as security, target amount, auction schedule etc., and auction result for the buyback of MTBs on Refinitiv, Bloomberg, SBPK pages and on SBP website.

The buyback price of the security will be determined through multiple-price competitive auction process.

All Primary Dealers will be eligible to submit competitive bids in the auctions. Non-competitive bids can also be submitted as per existing instructions.

Eligible participants will submit the following details in the auction bidding on Bloomberg Auction Module (AUPD) within the stipulated time:

• Bid price (per Rs100 of face value) for the buyback up to four decimal places
• Amount (face value) of the securities

On settlement date, the bought back securities will be debited from the SGLA of successful bidders while their current accounts will be credited with the accepted price.

Moreover, all other auction rules and procedures will apply to the buyback auctions as defined in various auction related circulars, SBP said.

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