SBP raises Rs557.6bn from Market Treasury Bills auction 

The State Bank of Pakistan (SBP) sold Market Treasury Bills (MTBs) worth Rs557.63 billion in an auction, exceeding its Rs225 billion target. 

According to the details shared by the central bank, the auction featured MTBs with 3, 6, and 12-month tenors, with cut-off yields of 21.6601%, 21.3999%, and 20.8998% respectively. 

The 6-month yield increased by 101 basis points, while the 3-month and 12-month yields remained steady.

The auction attracted bids totaling Rs994 billion, of which SBP accepted Rs557.63 billion. 

Specifically, for the 3, 6, and 12-month tenors, SBP received bids of Rs424.17 billion, Rs194.75 billion, and Rs375.42 billion and accepted Rs160.12 billion, Rs143 billion, and Rs210.51 billion, respectively. 

Additionally, Rs44 billion was accepted from a non-competitive auction, totaling Rs557.63 billion accepted.

The bid-to-cover ratio was 1.78, up from 1.41 in the prior auction, indicating SBP accepted 56.08% of the total bids.

In the previous auction on March 20, 2024, SBP sold MTBs worth Rs704 billion against a target of Rs340 billion.

In the same recent auction, SBP sold a 5-year Pakistan Investment Bond – Floating Rate (PIB-PFL) worth Rs5.4 billion, falling short of the Rs200 billion target. 

The cut-off price for the 5-year PIB-PFL was Rs95.8364. Bids for PIB-PFL semi-annual totaled Rs111 billion, and Rs16.89 billion for quarterly, with SBP only accepting bids for the semiannual bonds. 

The settlement date for these is April 04, 2024. The total raised for 5-year semi-annual PIBs was Rs5 billion from competitive bids and Rs0.4 billion from non-competitive bids.

The previous auction on March 20, 2024, saw SBP selling PIB-PFL worth Rs17.6 billion against a Rs200 billion target.