The State Bank of Pakistan (SBP) conducted a successful auction on Wednesday, selling Floating Rate Pakistan Investment Bond (PFL) valued at Rs439.27 billion for durations of 2, 3, and 5 years, surpassing the target of Rs280 billion.
Bids poured in, with Rs1.19 trillion submitted for semiannual PIB and Rs138.7 billion for quarterly PIB. The SBP accepted Rs409.08 billion and Rs30.18 billion, respectively, from these bids. Additionally, the central bank secured Rs30.81 billion through the sale of quarterly PIB-PFL, with Rs13.70 billion from the 2-year variety and Rs16.48 billion from the 3-year category. Of this total, Rs17.5 billion came from competitive bids, and Rs12.68 billion from non-competitive bids.
The remaining Rs409.08 billion was raised through the 5-year semiannual PIB-PFL, as no bids were received for the 10-year semiannual bond. Of this amount, Rs403.4 billion came from competitive bids, and Rs5.68 billion from non-competitive bids.
The cutoff prices were Rs98.6068 for the 2-year PIB-PFL, Rs97.3010 for the 3-year PIB-PFL, and Rs95.4322 for the semiannual PIB. Successful bids will settle on September 21, 2023.
The Weighted Average Yield on 3-Years PIB-F was set at 19.3229%, largely unchanged from previous auction. Weighted Average Yield on 5-Years PIB-F was set at 16.95%, marking 100bps increase from previous level. 10 years PIB rate was set at 15.2%
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