Pakistan’s investment bond yields decline by up to 55 basis points

State Bank of Pakistan (SBP) conducted the investment bond auction on Wednesday wherein the cut-off yields across different tenors decreased by 4-55 bps.

The cut-off yield on two-year bonds saw a sharp decline of 55 basis points to 12.5%, down from 13.02% recorded on November 20, 2024.

The yield for three-year bonds remained stable at 12.5%. Five-year bonds experienced an 11 basis point drop to 12.59%, while ten-year bonds saw a minor reduction of 4 basis points, settling at 12.8%.

Overall, cut-off yields now range between 12.50% and 12.80%.

The SBP successfully raised a total of PKR 382 billion, exceeding its target of PKR 350 billion. The auction attracted substantial investor interest, with bids amounting to PKR 824 billion against a target of PKR 350 billion.