KARACHI: The federal government on Wednesday raised some Rs 140 billion through the sale of long-term investment papers.

The State Bank of Pakistan (SBP) conducted the auction for the sale of Pakistan Investment Bonds (PIBs) on July 31, 2024 and received bids amounting to Rs 360.1 billion for the sale of 3-year, 5-year and 10-year bonds.

Out of the total bids, the federal government borrowed Rs 140.686 billion through sale of 3-year and 5-year bonds as against the target of Rs 125 billion for this auction.

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The borrowed amount includes Rs 132.4 billion competitive and Rs 8.28 billion of non-competitive bids. While, all bids for the 10-year PIBs were rejected.

As the Monetary Policy Committee (MPC) of the SBP had cut the key policy rate by 100 bps on Monday, cut-off yield of PIBs fell 15 to 36 bps in the auction held on Wednesday.

An amount of Rs 107 billion was borrowed against sale of 3-year PIBs and its cut-off yield declined by 36 bps to set at 16.2450 percent. Cut-off yield of 5-year long-term bonds fell 15 bps to 15.2950 and an amount of Rs 33 billion were raised.

Copyright Business Recorder, 2024