ISLAMABAD: The State Bank of Pakistan (SBP) conducted an auction on Wednesday, successfully selling Pakistan Investment Bond – Floating Rate (PIB-PFL) semiannual worth Rs327.7 billion for 5 and 10 years. The target was set at Rs360 billion, and the central bank received bids worth Rs396.82 billion for the semiannual floaters and Rs150 billion for the quarterly PIB.
The cut-off price for the 5-year PIB-PFL semiannual stood at Rs96.5209, while for the 10-year bond, it stood at Rs94.5377. The SBP accepted Rs327.7 billion in successful bids, with the settlement date set for August 8, 2024.
The total amount raised through the PIB-PFL semiannual comes from the sale of 5-year and 10-year semiannual PIBs worth Rs301.71 billion and Rs25.99 billion, respectively. The total sum raised represents Rs310.32 billion through competitive bids and Rs17.39 billion through non-competitive bids.
In comparison, the SBP had sold PIBs-PFL worth Rs170.5 billion in the last auction on July 24, exceeding the target of Rs210 billion. The cut-off price for the 3-year PIB-PFL quarterly was 98.8149, while the prices were 96.5288 and 94.4884 for the 5-year and 10-year PIB-PFL semiannual.
The auction results show a significant increase in investor interest in Pakistan’s government bonds, with foreign investors continuing to participate in the market. The SBP’s efforts to manage inflation and stabilize the economy have likely contributed to this increased interest.
