Govt Raises Rs. 376 Billion Through Pakistan Investment Bonds

The government on Thursday raised Rs. 376 billion through the auction of fixed-rate Pakistan Investment Bonds (PIBs) against an auction target of Rs. 100 billion.

According to data from the central bank, the cut-off yields for all maturities went up by 120-145 basis points (bps) in the auction of the paper.

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The cut-off yield for three-year PIBs soared by 145 bps to 13.3 percent. It went up by 120 bps to 13.0 percent for the five-year paper and drove upwards by 141 bps to 13.2 percent for the 10-year paper.

Interestingly, the SBP attracted total bids of Rs. 716.5 billion against an auction target of Rs. 100 billion. It registered sales of Rs. 26.9 billion with the three-year PIB, Rs. 62.8 billion through the five-year paper, and Rs. 286.2 billion via the 10-year paper, which made total proceeds of Rs. 375.8 billion.

Moreover, it received bids for 3-year PIBs totaling Rs. 122.1 billion, 5-year PIBs worth Rs. 241.9 billion, and 10-year PIBs worth Rs. 352.6 billion.

Conversely, the central bank did not attract any proffers or bids for the 15-year, 20-year, and 30-year papers with a combined auction target of Rs. 25 billion.

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Updated: April 28, 2022 — 4:38 pm
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