KARACHI: The government raised Rs298.5 billion of debt against a target of Rs175bn, primarily focused on a 5-year tenor In a Pakistan Investment Bond (PIB) auction on Wednesday.
The 3-year cut-off yields decreased by 5bps to 13.95 per cent raising Rs93.08 bn.
Similarly, the 5-year cut-off yields also decreased by 5bp bringing them to 12.4pc. The government raised Rs205.42 through 5-year PIBs.
The government rejected all bids for 10-year bonds, while no bids were received in 15-year, 20-year, and 30-year PIBs.
“The government managed to raise 70pc higher than the target. Yields have also gone down 5bp for both 3 and 5 year bonds. A majority of the bids were tilted towards longer maturities i.e. in 5yrs and 10yrs, indicating that the interest rate cycle has most likely peaked out,” Head of research at Arif Habib Limited Tahir Abbas said while speaking with Profit.
