Karachi October 2 2023: The government raised PKR 105 billion through an auction of fixed-rate Pakistan Investment Bonds (PIBs) compared to a target of PKR 160 billion, as per data published by the State Bank of Pakistan (SBP).
In the previous auction on September 18th 2023 government was able to raise just PKR 3.66 billion on fears of increasing inflation due to free fall in Rupee against Dollar and rising petroleum prices. However, Pakistan Rupee gain nearly 7 percent after hiting low of 306.97 on September 6th 2023.
The Cut-off yield for 3 years PIB decreased by 15 basis points to 19.19 percent while remianed at 16.95 percent and and 15.25 percent for 5-Year and 10-Year tenure.
Government received bids of PKR 198 billion for 3 year, PKR 33 billion for 5 years and PKR 29 billion for 10 year PIB. Government raised PKR 100 billion for 3-Year, PKR 3 billion for 5-Year and PKR 1.5 billion for 10-Year bond.
Investors demand return in a range of 19.10 percent (down 19 basis points) to 21.0 percent (down 200 basis points) for 3-Year, 16.90 percent (down 5 basis points) to 20.25 percent (down 275 basis points) for 5-Year and 15.20 percent (down 5 basis points) to 20.0 percent (down 300 basis points) for 10-Year Bonds.
Government did not receive bids for 15, 20 and 30 years PIBs.