Pakistan raises over PKR 140 billion through PIBs auction
The government had set a target of PKR 125 billion
Pakistan raised PKR 140.69 billion through the sale of Pakistan Investment Bonds (PIBs) on Wednesday against a target of PKR 125 billion.
The State Bank of Pakistan (SBP) conducted the auction and received bids amounting to PKR 360.1 billion for the sale of 3-year, 5-year and 10-year bonds despite declining rates.
The bank sold PKR 106.99 billion worth of 3-year papers at the cut-off yield of 16.24%, down 36 basis points (bps) from 16.6% in the last auction on July 9 . This is the lowest cut-off yield since October 2022 when it was 13.84%, and signifies further monetary easing going forward.
The SBP sold PKR 33.7 billion worth of 5-year papers at a cut-off yield of 15.29%, which is 15 bps down from 15.44% in the July 9 auction.
Bids for 10-year PIBs were rejected.
With declining PIB yields, the profit rates of National Savings Schemes would also be reduced.
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