The State Bank of Pakistan (SBP) raised Rs384.7 billion in its latest Pakistan Investment Bonds (PIBs) auction on January 15, 2025, surpassing the target of Rs350 billion.
Investor interest was robust, with total bids amounting to Rs1,568 billion. However, cut-off yields across various tenors decreased by 19 to 56 basis points (bps), now ranging between 11.90% and 12.80%.
While yields for 2-year, 3-year, and 5-year PIBs declined significantly, the 10-year yield remained stable compared to the previous auction in December. Analysts view this trend as a sign of improved borrowing conditions and heightened confidence in Pakistan’s debt market.
Meanwhile, in the currency market, the Pakistani rupee weakened slightly against the US dollar, depreciating by 5 paisa to close at 278.77 in the inter-bank market. Globally, the US dollar index eased by 0.2%, while benchmark 10-year US Treasury yields also slipped, adding support to bullion prices.
