The cut-off yield of Pakistan Investment Bonds (PIBs) continued to witness a downward trend and declined up to 60 basis points (bps) in the auction held Wednesday. According to SBP, the auction for the sale of Pakistan Investment Bonds for 3-, 5-, 10-, and 20-year maturity was held on February 25, 2015 with coupon rates of 11.25 percent, 11.50 percent, 12.00 percent, and 13.00 percent, respectively.
Overall, bids amounting to Rs 240.337 billion or total realised amount of Rs 262.459 billion were received for 3-, 5- and 10-year long-term investment bonds against the target of Rs 50 billion. No bid was received for 20-year PIBs. Bids amounting to some Rs 68.66 billion (total realised value) were received for 3-year, Rs 151.435 billion for 5-year and Rs 42.363 billion for 10-year bonds.
Overall, bids amounting to Rs 67.115 (total realised amount) were accepted for 3-, 5- and 10-year long-term government securities. A cut-off yield of 8.4980 percent, down by some 39 bps, was fixed for 3-year bond with accepted bids amounting to Rs 13.917 billion. With 61 bps decline, the cut-off yield of 5-year PIBs was set at 9.1418 percent and its accepted amount stood at Rs 39.552 billion. An amount of Rs 13.645 billion was borrowed through the auction of 10-year long-term papers while the cut-off yield was fixed at 9.8003 percent down from 10.0093 percent.
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