KARACHI, Aug 21: The State Bank on Tuesday increased the cut-off yields on Pakistan Investment Bonds (PIBs) of all tenures.

Market dealers said that the hike in yields was expected mainly because of increase in discount rate by 0.5pc effective from August 1.

The yield on benchmark 10-year PIBs was raised to 10.35pc from 10.12pc and on the 15-year PIB to 11.1494pc from 10.9857.

The cut-off yields on the five and three-year bonds were also increased to 9.8916pc and 9.6881pc from 9.5480pc and 9.3180pc respectively.The rate on 20 and 30 years PIBs was raised to 11.4016pc and 11.6802pc from 11.2016pc and 11.5937pc.

The SBP sold a total of Rs14.84 billion of PIBs while it received bids worth about Rs26.46 billion.