Karachi September 14, 2022: The government raised PKR 235.43 billion through an auction of fixed-rate Pakistan Investment Bonds (PIBs) compared to a target of PKR 175 billion, as per data published by the State Bank of Pakistan (SBP).
Cut-off yields decreased by 3 bps compared to the 3rd August PIB Auction despite recent Rupee fall. In last nine trading sessions Rupee fall by 6.7 percent as dollar shortage mounts in domestic market due to recent floods.
The cut-off yields for 3 years went down by 3 basis points percent to 13.9200 percent. The Cut-off yield for 5 years also decreased by 1 basis point. The Cut-off for 5 years is now 13.3900 percent.
Cut-off yields for 10 years PIB settled at 12.9500 percent.
The government borrowed amounts of PKR 28.14 billion, PKR 192.99 billion, and PKR 14.29 billion from the auction of 3 years 5years, and 10 years PIBs, respectively. The target for the current auction was set at PKR 60 billion for 3 years PIBs, PKR 60 billion for 5 years PIBs, PKR 35 billion for 10 years PIBs, PKR 10 billion for 15 years PIBs, PKR 5 billion for 20 years PIBs, and PKR 5 billion for 30 years PIBs.
Investors did not bid for 15 years, 20 years, and 30 years.
