KARACHI: The federal government on Wednesday borrowed less than the target through the sale of long-term government securities.

The auction for sale of 3-, 5-, 10-, 15-, 20- and 30-year long term Pakistan Investment Bonds (PIBs) was held on February 14, 2024 with settlement date of Feb 15, 2024. Overall, the State Bank of Pakistan (SBP) received bids amounting to Rs 223 billion for sale of 3-, 5- and 10-year PIBs. No bid was received for 15-, 20- and 30-year long-term investment bonds.

The federal government borrowed Rs 85.343 billion including non competitive bids through the sale of 3-, 5- and 10-year PIBs as against the target of Rs 125 billion.

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The accepted amount included Rs 75.5 billion of competitive, Rs 7.5 billion of non-competitive bids and Rs 2.3 billion of short selling.

An amount of Rs 70 billion was raised against 3-year bonds and its cut-off yield remained unchanged at 16.7999 percent. Cut-off yield of 5-year bonds down by 5 bps to 15.549 percent with accepted bids of Rs 13.72 billion. In addition, cut-off yield of 10-year PIBs was also unchanged at 14.50 percent against accepted bids of Rs 1.54 billion.

Copyright Business Recorder, 2024