Karachi: The State Bank of Pakistan (SBP) on Wednesday (December 22) auctioned Pakistan Investment Bonds (PIB) worth PKR 158 billion as compared to the target yield of PKR 100 billion, news sources reported. The heavy participation in the auction generated bids worth PKR 508 billion offers on PIB which showed strong market confidence in the context of the policy rate changes.
As per the analysts, the participation was higher owing to the State Bank’s policy of no interest rate change in the coming months. The government planned to get PKR 30 billion over three years, PKR 25 billion over five years, PKR 20 billion over 10 years, PKR 5 billion over 20 years, and PKR 5 billion over 30 years. However, because of the significant level of engagement, SBP received offers of PKR 123.8 billion for three years, PKR 215.3 billion for five years, PKR 163.9 billion for 10 years, and PKR 5 billion for 20 years. The government, on the other hand, has taken far less than the offer sum and has rejected all bids for 20-year PIBs.
According to market experts, the increased trust in PIB is attributed to interest rate adjustments and the hint that the central bank will not raise interest rates further. This ensures that long-term investors gain more from purchasing PIBs.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
