The federal government Wednesday rejected all the bids of Pakistan Investment Bond (PIBs). This was the sixth auction of long-term bonds in a row, which were rejected by the federal government and not a single penny was borrowed in the auction. Mainly, the government conducts one auction of PIBs every month and previously, the federal government didn't borrow any amount in August, September, October, November and December through the auction for PIBs.
The State Bank of Pakistan (SBP) Wednesday conducted the auction for PIBs for 3-,5-, 10-, and 20-year maturity to raise some Rs 50 billion for the federal government to meet its increasing financial requirements. Participation was very thin in the auction and overall, bids worth Rs 33.286 billion with a realized value of Rs 33.459 billion were received for the sale of 3- and 10-year long-term government securities, however, no bid was received for 5- and 20-year tenors.
Most of the bids were received for 3-year variety. The 3-year long-term papers fetched bids amounting to Rs 31.95 billion (total realized value) and some Rs 1.503 billion worth bids were received for 10-year papers. However, the federal government rejected all the bids.