The federal government raised Rs973.8 billion through the auction of Pakistan Investment Bonds (PIBs) on Wednesday, marking robust investor participation despite expectations that interest rates will remain stable in the near term.
According to data released by the State Bank of Pakistan (SBP), total bids worth Rs1.44 trillion were received across multiple maturities, including two-year, three-year, five-year, 10-year, and 15-year fixed-rate instruments.
Out of the total, the government accepted Rs771.9 billion in competitive bids, while overall acceptance — including non-competitive bids and short-selling — reached Rs792.7 billion (face value). The realised amount, inclusive of accrued interest, stood at Rs973.84 billion.
Cut-off yields rose slightly across most tenors, reflecting investor caution amid fiscal and inflationary concerns. The two-year PIB was sold at a yield of 11.4792%, while three-year and five-year bonds were settled at 11.4900% and 11.6390%, respectively. The 10-year and 15-year bonds fetched yields of 12.0005% and 12.2500%.
The 15-year PIB attracted the highest investor interest, receiving bids of Rs539.5 billion, though only Rs340 billion was accepted.
Meanwhile, the Pakistani rupee inched up by one paisa against the US dollar, closing at 280.86 in the inter-bank market on Wednesday. The currency has depreciated 0.82% since January but gained 1.03% so far in the ongoing fiscal year, according to Ismail Iqbal Securities.
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