The federal government Wednesday borrowed some Rs 126.36 billion from State Bank of Pakistan through auction of long term investment bonds. The State Bank of Pakistan conducted auction for the sale of 3-year, 5-year, 10-year and 20-year Pakistan Investment Bond (PIBs) on Monday. Most of bids were received for 5-year PIBs, while no bid was received for 20-year bonds.
Received bids included Rs 74.113 billion for 3-year, Rs 120 billion for 5-year and Rs 22.95 billion for 10-year. Overall, some Rs 113.251 billion worth bids with a realised value of Rs 126.360 billion were accepted in the auction. The borrowed amount is almost much higher than target of Rs 50 billion set for this auction.
Cut-off yield of 3-year PIBs declined 2 basic points (bps) to set at 6.3204 percent with accepted bids worth Rs 37.229 billion (realised value). For the 5-year, bids worth Rs 70.354 billion were accepted with a cut-off yield of 7 percent, down 5bps. Similarly, cut-off yield of 10-year PIBS set at 8.2296 percent, down 2 bps and accepted amount was Rs 18.77 billion.
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