Government Exceeds PIB Auction Target With ₨651.8 Billion Raise

The federal government successfully mobilised ₨651.8 billion through the latest auction of Pakistan Investment Bonds, substantially exceeding its initial target of ₨350 billion, according to auction results issued by the State Bank of Pakistan.

Aggregate investor participation remained strong, with total bids submitted during the auction reaching approximately ₨1.01 trillion.

The highest allocation was recorded in the 15-year PIB category, through which the government secured ₨521 billion in financing.

Auction data further showed that ₨55.4 billion was raised through 10-year Pakistan Investment Bonds, while ₨37.4 billion was mobilised through five-year instruments. Additionally, the government raised ₨26.3 billion via two-year PIBs and ₨11.6 billion through three-year securities.

The cut-off yield on two-year PIBs increased by 75 basis points to 13.25%, while the corresponding yield on three-year bonds also rose by 75 basis points to 13.25%.

For five-year PIBs, the cut-off yield increased by 45 basis points to 12.949%, whereas the yield for 10-year PIBs was recorded at 12.949%.

In the case of 15-year Pakistan Investment Bonds, the cut-off yield increased by 50 basis points to 12.90%.

Weighted average yields were reported at 13.1462% for two-year PIBs, 13.2466% for three-year securities, 12.9140% for five-year instruments, 12.8320% for 10-year bonds, and 12.9000% for 15-year PIBs.

The auction additionally included non-competitive bids amounting to approximately ₨32.8 billion.

According to the accompanying yield curve data, short-term government paper yields ranged from 12.01% on three-month tenors to approximately 13.25% on two-year and three-year maturities.