The State Bank of Pakistan (SBP) successfully auctioned Market Treasury Bills (MTBs) totaling Rs481.17 billion, far surpassing its initial target of Rs150 billion. The operation saw the maturity of Rs123 billion.
Yields for the MTBs saw a downward adjustment, with three-month bills cut by 56 basis points to 19.4899%, six-month bills by 50 basis points to 19.2891%, and twelve-month bills by 30 basis points to 18.2389%.
The auction attracted an overwhelming Rs1.79 trillion in offers, reflecting robust market interest. Specifically, the SBP received bids worth Rs259.81 billion for three months, Rs1.03 trillion for six months, and Rs507.24 billion for twelve months.
Of these bids, the central bank accepted Rs72.74 billion for three months, Rs207.09 billion for six months, and Rs142.36 billion for twelve months. Additionally, Rs58.97 billion was accepted from the non-competitive portion of the auction, bringing the total accepted amount to Rs481.17 billion.
The bid-to-cover ratio increased to 3.73 from 2.78 in the previous auction, indicating that the SBP accepted about 26.8% of the total bids it received.
Auction of Pakistan Investment Bonds – Floating Rate (PIB-PFL)
Furthermore, the SBP also conducted an auction for Pakistan Investment Bonds – Floating Rate (PIB-PFL) across various terms, realizing Rs170.46 billion against a target of Rs210 billion.
The auction saw bids totaling Rs236.37 billion for semiannual and Rs186 billion for quarterly PIB-PFL. Accepted amounts included Rs145.06 billion for semiannual floaters and Rs25.41 billion for quarterly bonds, with settlement due on July 25, 2024.
The proceeds from the five-year and ten-year semiannual bonds accounted for Rs138.87 billion of the funds raised competitively, with an additional Rs6.18 billion coming through non-competitive bids. The target had been to raise Rs200 billion, split evenly between the five and ten-year bonds.
