Cut-off yields of 3-year PIBs declined by upto 335 basis points from the previous rate

Pakistan Investment Bonds or long tenor bonds cut off yield saw a decline of 190 to 335 basis points in the latest auction, where participation from investors was two fold.

The cut-off yield for the 2-year PIB was recorded at 13.98%, while the 3-year PIB cut-off yield stood at 12.90%, which is 335 basis points lower than the previous cut-off and 33 basis points below the secondary market yields.

The 5-year PIB cut-off yield declined by 190 basis points to 13.40%, 42 basis points lower than the secondary market yields. The 10-year PIB cut-off yield was 13.20%, 32 basis points higher than the secondary market yields.

The investor participation reached a substantial PKR 631 billion ($2.25 billion). The bidding amounts were significant across various tenors, with PKR 261 billion in the 2-year tenor and PKR 156 billion in the 3-year tenor. For the 5-year and 10-year tenors, investors bid PKR 184 billion and PKR 31 billion, respectively.

Despite the high participation, the government managed to raise only PKR 24.5 billion against a target of PKR 200 billion. The highest amount raised was in the 2-year PIB, totaling PKR 10 billion, which accounted for 41% of the total amount raised. In the 3-year and 5-year tenors, the government raised PKR 1 billion each. The 10-year tenor saw the highest amount raised at PKR 12.4 billion, making up 51% of the total.