The State Bank of Pakistan (SBP) successfully raised Rs589.49 billion through the latest auctions of Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) on Wednesday, highlighting sustained investor confidence in government securities despite challenging macroeconomic conditions.
The auctions saw robust participation across both short- and long-term instruments. Rs203.35 billion was raised through 10-year floating-rate PIBs, while Rs386.14 billion was generated from MTBs with maturities ranging from one to twelve months.
In the PIB auction, the SBP received bids amounting to Rs539.2 billion (face value) and accepted Rs199.2 billion in competitive bids at a cut-off price of Rs94.8526, resulting in Rs189.15 billion in proceeds along with Rs1.65 billion in accrued interest.Â
The SBP also accepted Rs4.15 billion in non-competitive bids at a slightly higher price, bringing the total PIB acceptance to Rs203.35 billion.
The MTBs auction also saw significant demand, with the SBP accepting Rs33.36 billion for one-month bills at a cut-off yield of 10.8999%, Rs50.16 billion for three-month bills at 10.8502%, Rs33.06 billion for six-month bills at 10.8739%, and Rs65.18 billion for 12-month bills at 10.9999%. Weighted average yields for all tenors were slightly lower than the cut-off yields, indicating competitive pricing.
Additionally, the SBP accepted Rs204.35 billion in non-competitive bids for MTBs, boosting the total acceptance across all tenors to Rs59.28 billion for one-month, Rs182.32 billion for three-month, Rs54.11 billion for six-month, and Rs90.42 billion for twelve-month bills.
In the currency markets, after a streak of ten consecutive sessions of gains, the Pakistani rupee recorded a slight depreciation of 0.04% against the US dollar. The rupee closed at Rs282.67 in the inter-bank market, down by 10 paisa from the previous day’s closing rate of Rs282.57.
