SBP raises Rs192.8bn via PIB auction, yields soar up to 115bps

March 16, 2022 (MLN): The cut-off yields of Pakistan Investment Bonds (PIBs) were increased considerably by up to 115 basis points in the auction conducted by the State Bank of Pakistan (SBP) on Wednesday.

The government raised Rs192.8 billion through the auction of three, five, and ten-year PIBs while the target was Rs100bn.

The cut-off yields for 3-year, 5-year, and 10-year PIBs saw an increase of 115, 100, and 88 basis points to stand at 11.85%, 11.75%, and 11.74%, respectively.

The market had offered Rs588.9bn, out of which government accepted bids amounting to Rs192.8bn

SBP received bids worth Rs159.7bn for 3-year PIBs, Rs259.6 bn for 5-year, Rs162.7 bn for 10-year, Rs3.5 billion each for 15-year and 20-year PIBs. However, no bids were received for 30-year bonds.

The total amount raised for 3-year PIBs was Rs53.5bn, Rs80.4bn for 5-year, and Rs58.9bn for 10-year PIBs. Meanwhile, government rejected bids for 15-year and 20-year PIBs.

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