State Bank of Pakistan excels in recent bond auctions

The State Bank of Pakistan (SBP) recently completed auctions for Market Treasury Bills (MTBs) and Pakistan Investment Bond – Floating Rate (PIB-PFL) with impressive results. The MTBs auction saw the SBP surpassing its target by raising Rs1.21 trillion against a goal of Rs780 billion, with a maturity amount of Rs810 billion. The cut-off yields for the MTBs were 20.1498% for 3 months, 19.9693% for 6 months, and 18.9489% for 12 months.

During the MTBs auction, the total amount offered was Rs2.19 trillion, with bids amounting to Rs586.56 billion for 3 months, Rs683.65 billion for 6 months, and Rs917.7 billion for 12 months. The SBP accepted bids totaling Rs289.74 billion for 3 months, Rs489.27 billion for 6 months, and Rs315 billion for 12 months. Additionally, the SBP acquired Rs114.39 billion from the non-competitive auction, bringing the total raised amount to Rs1.21 trillion.

In a separate successful auction, the SBP sold Pakistan Investment Bond – Floating Rate (PIB-PFL) semi-annual bonds worth Rs90.43 billion for 5 and 10 years, against a target of Rs220 billion. The cut-off prices for the 5-year and 10-year PIB-PFL semi-annual bonds were Rs96.5875 and Rs94.4585, respectively.

The SBP received bids totaling Rs287.75 billion for PIB-PFL semi-annual bonds and Rs50 billion for PIB-PFL quarterly bonds. The central bank accepted bids amounting to Rs90.43 billion for the semi-annual floaters, while no bids were accepted for the quarterly PIB. The settlement date for the successful bids is June 13, 2024.

The State Bank of Pakistan's recent auctions for MTBs and PIB-PFL have been highly successful, exceeding targets and attracting significant investor interest. These auctions demonstrate the confidence of investors in Pakistan's financial market and the SBP's effective management of monetary policy. The raised funds will contribute to the country's economic development and stability, showcasing the resilience of Pakistan's financial sector.