SBP raises Rs89.4bn via PIB auction, yields soar up to 70bps

May 25, 2022 (MLN): The cut-off yields of Pakistan Investment Bonds (PIBs) were increased considerably by up to 70 basis points in the auction conducted by the State Bank of Pakistan (SBP) on Wednesday.

The government raised Rs89.4 billion through the auction of three- and five-year PIBs while the target was Rs100bn.

The cut-off yields for 3 and 5-year saw an increase of 24 and 70 basis points to stand at 14% and 13.19%, respectively.

The market had offered Rs614.50bn, out of which the government accepted bids amounting to Rs89.4bn

SBP received bids worth Rs168.58bn for 3-year PIBs, Rs197.30 bn for 5-year, Rs246.32bn for 10-year, and Rs2.3bn for 15-year PIBs. However, no bids were received for 20-year and 30-year bonds.

The total amount raised for 3-year PIBs was Rs23.84bn, and Rs65.57bn for 5-year. Meanwhile, the government rejected bids for 10-year and 15-year PIBs.

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