Auction for PIBs: government mops up Rs 137.685 billion

The federal government Wednesday borrowed some Rs 137.685 billion through the auction for long-term investment bonds. The State Bank of Pakistan conducted the auction for the sale of 3-year, 5-year, 10-year and 20-year Pakistan Investment Bond (PIBs) Fixed Rate on December 11, 2019 and received bids amounting to Rs 338.264 billion with realized value of Rs 323.623 billion.

The received bids included Rs 115.708 billion for 3-year, Rs 138.656 billion for 5-year, Rs 82.4 billion for 10-year and Rs 1.5 billion for 20-year variety.

Overall, some Rs 137.685 billion worth bids with a realized value of Rs 132.405 billion were accepted in the auction against sale of 3-,5-, and 10-year PIBs, while all the bids of 20-year bonds were rejected.

The cut-off yield of 3-year PIBs was almost flat at 11.75 percent with accepted bids worth Rs 55 billion. For 5-year, bids worth Rs 47.677 billion were accepted a cut-off yield of 11.1939 percent, down 25 basis points (bps). The cut-off yield of 10-year PIBs declined by 35 bps to 10.9968 percent and bids worth Rs 35 billion were accepted. Similarly, the federal government also borrowed Rs 72.2 billion through the sale of 10-year PIBs floating rate at 101.7689 cut-off price.