KARACHI: The federal government on Wednesday raised Rs 241.528 billion through sale of long-term investment bonds. The State Bank of Pakistan (SBP), on behalf of the federal government, conducted the auction for sale of 3-year, 5-year, 10-year, 12-year, 15-year, 20-year and 30-year Pakistan Investment Bonds (PIBs).

Overall, bids worth Rs 549.66 billion received for the sale of 3-year, 5-year and 10-year PIBs. No bid was received for the 15-year, 20-year and 30-year tenors.

Bids of Rs 107.79 billion were submitted for 3-year, Rs 333 billion for 5-year and Rs 108.6 billion for 10-year PIBs. Out of received bids, the government borrowed Rs 241.528 billion as against target of Rs 175 billion.

Some Rs 19.144 billion worth bids were accepted for 3-year bonds, cut-off yields decreased by 3 basis points (bps) to 13.92 percent. Cut-off yields of 5-year bonds also decreased by 1 bps to 13.39 percent and bids worth Rs 181.06 billion were accepted.

The cut-off yield of 10-year long-term bonds stood at 12.95 percent and Rs 10.73 billion were raised. In addition, some 24.49 billion were borrowed against the non-competitive bids of PIBs and Rs 6.1 billion of short selling.

Copyright Business Recorder, 2022