SBP sells Rs137.6bln worth of PIBs

KARACHI: The State Bank of Pakistan (SBP) raised Rs137.6 billion through the sale of Pakistan Investment Bonds (PIBs) at an auction on Wednesday.

The auction result showed that the raised amount was higher than the target of Rs100 billion. The yields on PIBs fell 5 to 35 basis points on short-term maturities and below 11 percent on 10-year bonds.

The SBP sold Rs55 billion worth of three-year PIBs, while the cut-off yield fell to 11.75 percent from 11.79 percent. The five-year PIBs were sold at a yield of 11.19 percent compared with 11.45 percent. The SBP sold Rs47.6 billion worth of five-year PIBs.

The SBP further raised Rs35 billion at 10.99 percent for 10-year securities. Latest auction indicate that investors expect inflation may not remain high in the medium term and they bought 10-year bond at below 11 percent.