KARACHI:
The State Bank of Pakistan (SBP) raised Rs589.49 billion through latest auctions of Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) on Wednesday, reflecting continued investor confidence in government securities despite evolving macroeconomic conditions.
The auctions attracted robust participation across both short- and long-term instruments. Of the total amount raised, Rs203.35 billion was mobilised through 10-year floating-rate PIBs, while Rs386.14 billion came from various tenors of MTBs ranging from one month to 12 months.
In the PIB auction, the SBP received bids totalling Rs539.2 billion (face value). It accepted Rs199.2 billion in competitive bids at a cut-off price of Rs94.8526, translating into a realised amount of Rs189.15 billion, along with accrued interest of Rs1.65 billion. Additionally, non-competitive bids worth Rs4.15 billion were accepted at a slightly higher price of Rs94.9541, bringing the total PIB acceptance to Rs203.35 billion.
The MTBs auction was equally well-received, with demand spread across four tenors. In competitive bidding, the SBP accepted 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 across all tenors were slightly lower than the respective cut-off yields, indicating some price competitiveness.
The central bank also accepted Rs204.35 billion in non-competitive bids for MTBs, boosting total acceptance to Rs59.28 billion for one-month, Rs182.32 billion for three-month, Rs54.11 billion for six-month and Rs90.42 billion for 12-month tenors.
Moreover, after 10 straight sessions of gains, the Pakistani rupee slipped against the US dollar on Wednesday, recording a marginal depreciation of 0.04% in the inter-bank market. By the end of trading, the rupee stood at 282.67, down by 10 paisa from Tuesday’s close at 282.57.
Meanwhile, gold prices in Pakistan increased, defying the global trend where the precious metal saw a mild retreat as investors booked profits after a recent rally. In the local market, the price of gold per tola rose by Rs1,300, settling at Rs359,300, according to the All Pakistan Sarafa Gems and Jewellers Association. Similarly, the price of 10-gram gold climbed by Rs1,114 to Rs308,041.
Speaking to The Express Tribune, Interactive Commodities Director Adnan Agar said the local market remained tilted towards the upside. “Gold was on an upward trend. The day’s high was $3,385 and the low was $3,344, with the market later standing at $3,378,” he said.
Agar noted that if the market closed above the $3,375-3,380 range, there was a strong possibility that gold could test $3,440-3,450 levels in the near term.
Globally, spot gold fell 0.1% to $3,378.12 per ounce by 1202 pm ET (1602 GMT). However, US gold futures were up 0.1% at $3,436.90.
