August-October: SBP to auctions for T-bills, bonds worth Rs1.575t
Govt aims to borrow Rs150b through PIBs of three, five, 10 and 20 years of maturity.
PIBS: Rs50b is the target for each of the three PIB auctions to be held on August 12, September 9 and October 7. PHOTO: ATHAR KHAN/EXPRESS
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 Rs1.575 trillion in August-October.
According to the auction calendar released by the SBP on Tuesday, the government will raise Rs1.425 trillion via seven MTB auctions in August-October. Two auctions will take place in August and October each while three auctions will be held in September.
The MTB target for each auction ranges from a maximum of Rs300 billion (to be held on August 19) to a minimum of Rs125 billion (to be held on September 30).
Almost 85% of the total MTB auction target of Rs1.425 trillion for the three-month period represents the federal government’s ‘maturing amount’. This means the ‘additional requirement’ of the federal government for August-October is only Rs217 billion, or 15.2% of the auction target.
The government aims to borrow a total of Rs150 billion in August-October through PIBs of three, five, 10 and 20 years of maturity. The target for the three auctions -- to be held on August 12, September 9 and October 7 - is Rs50 billion each.
Unlike the MTB auction target where the maturing amount exceeds the additional requirement, the maturing amount in the case of the PIB auction constitutes only one-third of the target for August-October.
Tenders for the sale of PIBs are invited by the SBP from primary dealers on each respective auction date through Bloomberg Online Auction. Primary dealers form a select group of 11 banking institutions for 2014-15 that participates in the trading of government papers in the primary market by bidding in the SBP auctions.
Published in The Express Tribune, August 5th, 2015.
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 Rs1.575 trillion in August-October.
According to the auction calendar released by the SBP on Tuesday, the government will raise Rs1.425 trillion via seven MTB auctions in August-October. Two auctions will take place in August and October each while three auctions will be held in September.
The MTB target for each auction ranges from a maximum of Rs300 billion (to be held on August 19) to a minimum of Rs125 billion (to be held on September 30).
Almost 85% of the total MTB auction target of Rs1.425 trillion for the three-month period represents the federal government’s ‘maturing amount’. This means the ‘additional requirement’ of the federal government for August-October is only Rs217 billion, or 15.2% of the auction target.
The government aims to borrow a total of Rs150 billion in August-October through PIBs of three, five, 10 and 20 years of maturity. The target for the three auctions -- to be held on August 12, September 9 and October 7 - is Rs50 billion each.
Unlike the MTB auction target where the maturing amount exceeds the additional requirement, the maturing amount in the case of the PIB auction constitutes only one-third of the target for August-October.
Tenders for the sale of PIBs are invited by the SBP from primary dealers on each respective auction date through Bloomberg Online Auction. Primary dealers form a select group of 11 banking institutions for 2014-15 that participates in the trading of government papers in the primary market by bidding in the SBP auctions.
Published in The Express Tribune, August 5th, 2015.