SBP secures Rs55.95bn from PIBs sale, falls short in target

Auction yields dip as hopes for rate cut grow amidst slowing inflation

The State Bank of Pakistan (SBP) secured Rs55.95 billion from the sale of fixed-rate Pakistan Investment Bonds (PIBs), missing its Rs 125 billion target.

According to results shared by the SBP, the auction, which offered 3-year, 5-year, and 10-year PIBs totaling Rs253.55 billion, did not attract bids for the 15, 20, and 30-year bonds.

The central bank acquired Rs34.965 billion for the 3-year bonds, Rs10.833 billion for the 5-year, and Rs 558 million for 10-year bonds through competitive bidding. 

An additional Rs9.862 billion was raised from non-competitive bids, culminating in the total funds raised.

Yields for the bonds were set at 16.78% for 3 years, 15.49% for 5 years, and 14.35% for 10 years, marking a slight decrease from the previous auction held on February 14, 2024. 

This reduction in yields — 2 basis points (bps) for the 3-year, 6 bps for the 5-year, and 15 bps for the 10-year bonds—reflects growing optimism for an impending rate cut following a drop in inflation to a 20-month low in February.

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