The State Bank of Pakistan (SBP) sold Pakistan Investment Bonds (PIBs) worth Rs96.88 billion in an auction on Wednesday, falling short of the target of Rs190 billion.
According to the latest data shared by the SBP, the total amount offered was Rs203.9 billion for the 3-year, 5-year, and 10-year PIBs, with no bids received for the 15, 20, and 30-year bonds.
The central bank accepted Rs24.28 billion for 3-year bonds, Rs45.4 billion for 5-year bonds, and Rs14.95 billion for 10-year bonds through competitive bids.
Additionally, SBP accepted Rs12.26 billion from non-competitive bids, bringing the total amount raised to Rs96.88 billion.
The cut-off yields were 16.645% for 3-year bonds, 15.45% for 5-year bonds, and 14.3% for 10-year bonds.
Compared to the last PIB auction on April 16, 2024, the yields for the 3-year, 5-year, and 10-year PIBs decreased by 1 basis point, 3 basis points, and 5 basis points, respectively.
This decline in yields reflects market expectations of an imminent rate cut. In the previous auction, the central bank secured Rs6.83 billion for 3, 5, and 10-year bonds against a target of Rs190 billion, with yields dropping by up to 13 basis points.
