SBP raises Rs634.8bn from T-bill, PIB auction

KARACHI: The State Bank of Pakistan (SBP) has reported that the government raised a collective amount of Rs634.8 billion from the auction of Pakistan Market Treasury Bills (T-bills), and floating-rate Pakistan Investment Bonds (PIBs), with both auctions held on Wednesday.

Specifically, the government raised Rs547.8 billion through T-bills, against the auction target of Rs450 billion, and Rs87 billion through the sale of floating-rate PIBs.

The SBP conducted the auction for the sale of 3-month, 6-month and 12-month T-bills and received bids amounting to over Rs1 trillion.

Bids worth Rs363.2 billion were received for 3-month T-bills, Rs358.8 billion for 6-month T-bills, while 12-month government papers fetched bids amounting to Rs280.5 billion.

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Of the received bids, the federal government raised Rs257.7 billion for 3-months, Rs203.4 billion for 6-months and Rs64.5 billion for 12-months.

The total acceptance in the auction, including non-competitive bids, was Rs547.8 billion.

The cut-off yield for 3-month bids was at 7.15 per cent, or an increase of 16 basis points from the last auction held on August 12. The yield for 6-month bids also increased by 15 basis points to 7.18 per cent. The yield for 12-month bids remained unchanged at 7.3 per cent.

Bidding was mostly concentrated in shorter term T-bills, mimicking the trend at the beginning of this year of investing in short term papers over long term papers.

Meanwhile, in PIBs, out of the Rs128.6 billion for the 3-year PIB, SBP accepted Rs75.9 billion. For 5-year PIB, the central bank accepted Rs5.3 billion out of Rs49.3 billion, whereas it accepted Rs5 billion for 10-year PIB, out of Rs39.5 billion.

The next auction date for both T-bills and PIBs-floating rate is set for September 9.

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Meiryum Ali
The author is a member of the staff and can be reached at [email protected]
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