On Wednesday, the government successfully raised Rs. 158 billion through the auction of fixed-rate Pakistan Investment Bonds (PIBs), slightly below the targeted amount of Rs. 190 billion. Central bank data reveals a notable decline in the cut-off yields for different tenures of PIBs in this auction.
For 3-year PIBs, the cut-off yields experienced a decrease of 40 basis points (bps). Similarly, the cut-off yields for the 5-year and 10-year PIBs saw declines of 38 and 50 bps, respectively.
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The government accepted bids totaling Rs. 81.10 billion for 3-year PIBs, along with Rs. 40.57 billion and Rs. 1.52 billion for the 5-year and 10-year PIBs, respectively. Interestingly, there were no bids received for the 15-year, 20-year, and 30-year PIBs.
In addition to the auction, the government raised an additional Rs. 34.3 billion through non-competitive bids, bringing the total amount raised to Rs. 157.5 billion. The successful auction and participation in non-competitive bids indicate investor interest in the fixed-rate PIBs, albeit falling short of the initial target.
