KARACHI: The government’s Pakistan Investment Bonds (PIBs) auction saw record participation with total bids crossing Rs1 trillion-mark, data released by the State Bank of Pakistan (SBP) showed on Wednesday.

Of the total Rs1.034tr, the government accepted bids worth Rs494.68 billion mostly concentrated in the three-year tenors.

The government accepted bids worth Rs414.55bn in three-year instruments at a cut-off yield of 14.25 per cent — highest in the auction. The yields started declining with the increase in maturity period indicating that interest in long-term instruments would decline.

The government raised Rs55.13bn from the five-year instruments at a cut-off yield of 13.55pc, Rs25bn from 10-year bonds at a cut-off yield 13.14pc while the bids worth Rs2.7bn for the 20-year instruments were rejected.

The government also raised Rs41bn on floating rates for 10-year instruments against bids worth Rs47bn.

Published in Dawn, August 22nd, 2019