The federal government Wednesday borrowed over Rs 34 billion through the auction for long-term government bonds. Auction for Pakistan Investment Bonds (PIBs) was held on April 18, 2018 for the sale of 3-, 5-, 10- and 20-year varieties. Overall, the SBP received bids worth Rs 87.71 billion with total realized amount of Rs 89.605 billion for the sale of 3-, 5- and 10-year bonds. However, no bid was received for 20-year PIBs.
Overall, the federal government accepted bids worth Rs 33 billion with total realized value of Rs 34.209 billion against the target of Rs 100 billion. After a gap of over six months, the federal government has borrowed some amount through the auction. Previously, in July 2017 the government raised some Rs 54 billion.
A cut-off yield of 7.1999 percent was set for 3-year PIBs on Wednesday compared to 6.4091 percent in the auction held in July 2017 with the borrowed amount of Rs 7.588 billion. An amount of Rs 101 million was raised from the 5-year long-term investment bond at a cut-off yield of 8.0305. Similarly, the cut-off yield for 10-year PIBs was set at 8.5000 percent with Rs 26.519 billion bids.