Cut-off Yields on Fixed Rate PIBs Down by 5 BPS

The cut-off yields on the fixed-rate Pakistan Investment Bonds (PIBs) were down by 5 basis points (bps) in the auction of the paper on Wednesday. According to the data released by the State Bank of Pakistan (SBP), the government raised Rs. 274 billion against a target of Rs. 175 billion. The yield on three-year PIBs went up by 5 bps to 13.9473 percent, the SBP’s PIBs auction result showed. The yield on the five-year paper also went down by 5 bps to 13.4000 percent. The government raised Rs. 83 billion against a targeted amount of Rs. 60 billion for the three-year paper. Against the five-year paper, the government raised Rs. 191 billion against a target of Rs. 60 billion. The government rejected all the bids received for the 10-year paper. The 15-year, 20-year, and 30-year papers did not attract any bids. A further breakdown of the official numbers indicates that the government also raised Rs. 24.39 billion through non-competitive bids, which took total proceeds to Rs. 298 billion.