Karachi September 18 2023: The government raised PKR 1.6 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).
Last week, the Monetary Policy Committee (MPC) decided to maintain the policy rate at 22 percent. This decision takes into account the latest inflation outturn reflecting the continuing declining trend in inflation from its peak of 38 percent in May to 27.4 percent in August 2023.
The Cut-off yield for 3 years PIB remained at 19.35% while increased by 100 basis points for 3-Year tenure.
Government received bids of PKR 63 billion for 3 year, PKR 32 billion for 5 years and PKR 47 billion for 10 year PIB. Government raised PKR 1.3 billion for 3-Year, PKR 200 million for 5-Year and PKR 100 million for 10-Year bond.
Investors demand return in a range of 19.29 percent to 23.0 percent for 3-Year, 16.95 percent to 23.0 percent for 5-Year and 15.25 percent to 23.0 percent for 10-Year Bonds.
Government did not receive bids for 15, 20 and 30 years PIBs.