The federal government Wednesday mopped up over Rs 59 billion through the auction for long term government bonds. Auction for Pakistan Investment Bonds (PIBs) for 3-, 5-, 10- and 20-year maturity was held on February 22, 2017. Overall, the State Bank of Pakistan (SBP) received bids worth Rs 112.118 billion with a total realised amount of Rs 115.22 billion. Most of the bids were received for 3-year papers, which fetched bids amounting to Rs 93 billion.
Out of total received bids, the federal government accepted bids amounting to Rs 58.178 billion with a total realised value of Rs 59.725 billion against the target of Rs 50 billion. The cut-off yield of all long-term bonds remained stable. The government largely borrowed through the sale of 3-year bonds. A cut-off yield of 6.4066 percent was set for 3-year PIBs against the sale of some Rs 59.698 billion (realised amount) PIBs.
An amount of Rs 1.046 million (realised amount) was raised from the 5-year long-term investment bond at 6.8994 percent. Similarly, some Rs 26.697 million were borrowed against the sale of 10-yerar bonds at 7.9406 percent. The federal government rejected all the bids of 20-year papers.
Comments
Comments are closed for this article.