The State Bank of Pakistan (SBP) on Monday said the first auction of Pakistan Investment Bonds (PIBs) following an increase in the interest rate saw a jump in rates as cut-off yields were raised by up to 246 basis points.
According to a report by Dawn, the government raised Rs117 billion against the target of Rs100bn in the auction held after the change in the monetary policy. The investors’ bids were Rs288bn indicating the rush for higher yielding PIBs.
The cut-off yield on five-year PIBs was increased by 241 basis points to 11.59pc, with the government managing to raise Rs56.45bn.
The cut-off yield on 10-year PIBs was increased by 196 basis points to 11.79pc and Rs35.5bn was raised by the government. Bids for 15-years PIBs were rejected while no bids received for 20 and 30-year PIBs.
