Pakistan Investment Bonds generate over Rs 59 billion for State Bank of Pakistan

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Pakistan Investment Bonds generate over Rs 59 billion for State Bank of Pakistan

KARACHI: Pakistan Investment Bonds generate over Rs 59 billions for State Bank of Pakistan.

The State Bank of Pakistan (SBP) has raised Rs59.4 billion through the sale of Pakistan Investment Bonds (PIBs). SBP data showed that the cut-off yields for all tenors increased, reflecting the much higher expected inflation result for January.

The yields on 3-year bonds rose by 30 basis points, from 11.75pc to 12.05pc. The same on 5-year bonds also increased to 11.4pc from 11.19pc previously, while the yields on 10-year bonds increased from 10.9pc to 11pc.

As per the auction result, the participation was Rs127 billion, while the target was Rs100 billion.

Out of the Rs41.45 billion for 3-year PIB, SBP accepted Rs19.6 billion. For 5-year PIB, the central bank accepted Rs29.6 billion out of Rs49.2 billion, whereas it accepted Rs10.2 billion for 10-year PIB, out of Rs34.6 billion.

Bids for 20-year bonds were rejected. The next auction will be held on 4 March 2020.

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