Karachi Janaury 17 2024: On January 16 2023 the State Bank of Pakistan (SBP) raised a total of PKR 162 billion through the auction of market treasury bonds with significant reduction in returns demanded by investors for longer tenure bonds.
Cut-off yields drop for 3 Year, 5 Year and 10 Year bonds decreased by 40 basis points, 38 basis points and 50 basis points compared to the previous auction and 259 basis points, 45 baisis points and 100 basis points from their respective peaks.
Majority of the acceptance remained in 3 Year tenure as investors continue to seek higher returns relatively higher returns for longer term bonds.
The government received total bids worth PKR 460 billion and the highest bids of PKR 181 billion for 3 Years bond followed by PKR 129 billion for 5 Years bond and PKR 116 billion for 12 Years bond.
The cut-off yield for 3 Years, 6 Years and 12 Years bond settled at 16.8 percent, 15.5 and 14.5 percent, respectively.
Government raise an amount of PKR 97 billion in 3 Years followed by PKR 62 billion in 6 Years and PKR 3 billion in 12 Months.
The government raised PKR 162 billion in the latest auction against a target of PKR 190 billion.
