The federal government on Wednesday borrowed Rs 136 billion through the auction for long-term investment papers. The cut-off yield of 3-year Pakistan Investment Bond rose slightly in the auction held on April 20, 2016. The margin on 10-year bonds declined slightly. In response to the tender, the SBP received bid amounting to Rs 193.673 billion (Rs 198.945 billion realised value) for the sale of 3-, 5- and 10-year long-term investment bonds. However, no bid was received for 20-year PIBs.
Some Rs 72.907 billion bids were received for 3-year, Rs 73.027 billion for 5-year and Rs 47.738 billion for 10-year. Overall, bids worth Rs 131.993 billion with total realized value of Rs 135.958 billion were accepted against the target of Rs 50 billion set for this auction.
A cut-off yield of 6.5492 percent, up 23 basis points, was set for 3-year PIBs with accepted amount of Rs 45.761 billion (total realized value). Some Rs 60.956 billion were borrowed through 5-year long-term investment bond at a cut-off yield of 7.9997 percent, which is almost equal to previous auction. In addition, the cut-off yield of 10-year bonds declined by 4bps to 8.1804 percent and bids worth Rs 29.239 billion were accepted.
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