KARACHI: The State Bank of Pakistan (SBP) has raised Rs59.4 billion through the sale of Pakistan Investment Bonds (PIBs).
SBP data showed that the cut-off yields for all tenors increased, reflecting the much higher expected inflation result for January.
The yields on 3-year bonds rose by 30 basis points, from 11.75pc to 12.05pc. The same on 5-year bonds also increased to 11.4pc from 11.19pc previously, while the yields on 10-year bonds increased from 10.9pc to 11pc.
As per the auction result, the participation was Rs127 billion, while the target was Rs100 billion.
Out of the Rs41.45 billion for 3-year PIB, SBP accepted Rs19.6 billion. For 5-year PIB, the central bank accepted Rs29.6 billion out of Rs49.2 billion, whereas it accepted Rs10.2 billion for 10-year PIB, out of Rs34.6 billion.
Bids for 20-year bonds were rejected. The next auction will be held on 4 March 2020.
The higher yields on the PIBs reflect concerns about the inflationary pressures, due to a rise in food prices. The inflation rate had jumped up 14.56 per cent year-on-year (YoY) for the month of January, up from 12.6 in December 2019, according to data released by the Pakistan Bureau of Statistics.