SBP releases auction calendar for PIBs, MTBs
Amount to Rs1.13t, will be held in November-January.
KARACHI:
The State Bank of Pakistan (SBP) will hold auctions for Pakistan Investment Bonds (PIBs) and market treasury bills (MTBs) of different maturities amounting to a total of Rs1.13 trillion in November-January.
According to the auction calendar released by the SBP on Thursday, the government will raise Rs980 billion via six MTB auctions in November-January. Two auctions will take place in November, December and January each.
The MTB target for each auction ranges from a maximum of Rs260 billion (to be held in November) to a minimum of Rs75 billion (to be held on December 24).
The government aims to borrow a total of Rs150 billion in November-January through PIBs of three, five, 10 and 20 years of maturity. The target for the three auctions -- to be held in November and December – is Rs50 billion each.
Meanwhile, the government raised a little over Rs285.7 billion in the first MTB auction of November on Wednesday against the target of Rs260 billion. Indicating their expectation of a downward revision in the discount rate in the upcoming monetary policy, banks invested Rs127 billion and Rs122.1 billion in the 12-month and six-month bills, respectively.
In contrast, their investment amounted to only Rs36.6 billion in the three-month papers, which reflects their strategy to lock in higher interest rates before the expected monetary easing. A majority of analysts expect a downward revision of 50 to 100 basis points in the policy rate in the wake of easing inflationary pressures in recent months.
Published in The Express Tribune, November 14th, 2014.
The State Bank of Pakistan (SBP) will hold auctions for Pakistan Investment Bonds (PIBs) and market treasury bills (MTBs) of different maturities amounting to a total of Rs1.13 trillion in November-January.
According to the auction calendar released by the SBP on Thursday, the government will raise Rs980 billion via six MTB auctions in November-January. Two auctions will take place in November, December and January each.
The MTB target for each auction ranges from a maximum of Rs260 billion (to be held in November) to a minimum of Rs75 billion (to be held on December 24).
The government aims to borrow a total of Rs150 billion in November-January through PIBs of three, five, 10 and 20 years of maturity. The target for the three auctions -- to be held in November and December – is Rs50 billion each.
Meanwhile, the government raised a little over Rs285.7 billion in the first MTB auction of November on Wednesday against the target of Rs260 billion. Indicating their expectation of a downward revision in the discount rate in the upcoming monetary policy, banks invested Rs127 billion and Rs122.1 billion in the 12-month and six-month bills, respectively.
In contrast, their investment amounted to only Rs36.6 billion in the three-month papers, which reflects their strategy to lock in higher interest rates before the expected monetary easing. A majority of analysts expect a downward revision of 50 to 100 basis points in the policy rate in the wake of easing inflationary pressures in recent months.
Published in The Express Tribune, November 14th, 2014.