Karachi July 31 2024: In the latest Pakistan Investment Bonds (PIB) auction, the State Bank of Pakistan (SBP) raised Rs 132 billion through competitive bids, with cut-off yields decreasing by 15 to 36 basis points.
This was the first PIB auction following the Monetary Policy Committee’s (MPC) announcement of a 100 basis point interest rate cut to 19.5 percent.
The highest amount, Rs 100 billion, was raised in the 3-Year PIB, followed by Rs 32 billion in the 5-Year PIB. The cut-off yield for the 3-Year PIB dropped by 36 basis points to 16.2450 percent, the lowest since October 2022.
The cut-off yield for the 5-Year PIB declined by 15 basis points to 15.2950 percent. The SBP rejected bids amounting to Rs 27 billion for the 10-Year PIB.
The auction had a target amount set at Rs 125 billion.
