SBP raises Rs377bn through PIB auction, 3-year bonds lead

Mettis Global reported that the State Bank of Pakistan raised Rs376.74bn in face value through its fixed-rate Pakistan Investment Bond auction, held on October 7 with settlement on October 8. Total bids reached Rs849.05bn across five tenors, from 2-year to 15-year instruments. The amount accepted topped the Rs350bn target, which the SBP had earlier cut from Rs450bn.

Individual targets were also revised: the 2-year and 3-year goals each fell to Rs75bn from Rs100bn, and the 10-year target was halved to Rs50bn. The 5-year and 15-year targets stayed at Rs100bn and Rs50bn. The 3-year tenor drew the largest bids at Rs386.403bn, ahead of Rs309.775bn for the 5-year.

Competitive acceptances totalled Rs342.276bn, with the 3-year tenor taking Rs195bn at a cut-off yield of 12.7460%. The 5-year absorbed Rs122bn at 12.8998%, the 10-year Rs25.025bn at 12.85%, and the 2-year Rs0.251bn at 12.7950%, while 15-year bids were rejected. Cut-off yields climbed 26 to 41 basis points in the 3-, 5- and 10-year tenors, whereas the 2-year yield dropped 19 basis points. Non-competitive bids of Rs34.4648bn brought total acceptance to Rs376.74bn.