On Tuesday, the government successfully raised Rs. 158 billion through the auction of fixed-rate Pakistan Investment Bonds (PIBs), slightly below the target of Rs. 190 billion.
Central bank data reveals a decline in cut-off yields for PIBs across various tenures in the auction. The cut-off yields for 3-year PIBs decreased by 40 basis points (bps), while the 5-year and 10-year PIBs witnessed reductions of 38 and 50 bps, respectively.
In the auction, the government accepted Rs. 81.10 billion for 3-year PIBs, Rs. 40.57 billion for 5-year PIBs, and Rs. 1.52 billion for 10-year PIBs. However, there were no bids for the 15-year, 20-year, and 30-year PIBs.
Additionally, the government secured Rs. 34.3 billion through non-competitive bids, bringing the total amount raised to Rs. 157.5 billion. Despite the auction falling short of the target, the successful mobilization of funds demonstrates continued investor interest in PIBs, albeit with varying tenures.
