State Bank of Pakistan Exceeds PIB Auction Target with Rs384.7 Billion Raised

The State Bank of Pakistan raised Rs384.7 billion in its latest Pakistan Investment Bonds auction held on January 15, 2025, surpassing the target of Rs350 billion.

Investor participation was strong, with total bids reaching Rs1,568 billion. Despite high demand, cut-off yields across various tenors dropped by 19 to 56 basis points, now ranging from 11.90 percent to 12.80 percent.

Yields for 2-year, 3-year, and 5-year PIBs saw notable decreases, while the 10-year yield remained unchanged compared to the December auction. Analysts interpret these shifts as indications of improved borrowing conditions and growing confidence in the country's debt market.

In the currency market, the Pakistani rupee saw a slight depreciation against the US dollar, losing 5 paisa to close at 278.77 in the inter-bank market. On the global front, the US dollar index fell by 0.2 percent, while benchmark 10-year US Treasury yields also declined, lending support to rising bullion prices