Business Desk
May 23, 2024
The State Bank of Pakistan (SBP) auctioned Pakistan Investment Bonds (PIBs) for Rs 96.88 billion, falling short by Rs 190 billion.
According to the central bank, the total amount offered was Rs203.9 billion for the three-, five-, and 10-year PIBs, with no bids received for the 15-, 20-, and 30-year bonds.
In addition, the SBP approved competitive bids for Rs24.28 billion in three-year bonds, Rs45.4 billion in five-year bonds, and Rs14.95 billion in 10-year bonds.
Moreover, SBP approved Rs12.26 billion in non-competitive bids, increasing the total raised to Rs96.88 billion.
The cutoff rates for three-year bonds were 16.645%, 15.45% for five-year bonds, and 14.3% for 10-year bonds.
Yields for the three-year, five-year, and 10-year PIBs declined by one basis point, three basis points, and five basis points, respectively, compared to the last PIB auction on April 16, 2024.
This decrease in yields reflects market anticipation of an impending rate drop. In the last auction, the central bank raised Rs6.83 billion for three-, five-, and 10-year bonds versus a goal of Rs190 billion, with yields falling by much to 13 basis points.
