The government on Thursday raised Rs133.5 billion through an auction of fixed-rate Pakistan Investment Bonds, with the yields falling on three-, five- and 10-year papers, auction result showed.
The auction target was Rs100 billion.
The cut-off yield on the three-year PIB dropped by 71 basis points (bps) to 10.79 percent. The yield on five-year paper also fell by 72 bps to 10.86 percent. The yield on a 10-year paper rose 79 bps to 11 percent.
The State Bank of Pakistan said it sold Rs83.5 billion worth of three-year paper and Rs40 billion of the five-year and Rs10 billion worth of 10-year paper.
The government rejected bids for 15-year and 20-year PIB. Moreover, no bids were received for 30 years’ PIBs. Analysts said the yields are going down as investors expect the interest rates to remain unchanged in the near term.
The SBP kept the policy rate unchanged at 9.75 percent in its last policy setting meeting.