Govt raises Rs427b in PIB auction

The government has raised Rs427.1 billion in the latest auction of Pakistan Investment Bonds (PIBs), significantly exceeding its target of Rs350 billion and reflecting strong investor interest.

At the auction conducted by the State Bank of Pakistan (SBP) on Wednesday, investors submitted total bids of Rs887.6 billion for various tenors. Cut-off yields for accepted bids ranged from 11.88% to 12.79%, exhibiting a slight adjustment compared to the previous auction.

The most substantial participation and allocation came in the 10-year tenor, where the SBP accepted bids worth Rs248.39 billion. Other notable allocations included Rs98.55 billion for five-year PIBs, Rs41.62 billion for two-year bonds and Rs38.58 billion for three-year papers.

The yield curve remained upward sloping, with longer tenors commanding higher yields, which indicated market expectations of sustained inflation or a tighter monetary policy in the medium to long term.

Meanwhile, gold prices registered a sharp increase, mirroring the global uptrend. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the per-tola price rose by Rs3,000 to Rs321,000. On the international front, bullion rose by $30 during the day, reaching $3,040 per ounce, according to the APSGJA.

Interactive Commodities Director Adnan Agar noted that international gold prices surged by nearly $100 during the day. “Gold touched a low of $2,978 and is currently trading at a high of $3,084. The market is holding at these elevated levels,” he said.

He attributed the surge to escalating trade tensions between China and the United States.

In the inter-bank market, the Pakistani rupee experienced a marginal decline against the US dollar. The rupee closed at 280.78, down by 5 paisa, or 0.02%, from the previous day’s rate of 280.73.