The cut-off yields would have gone further up had the ministry raised the targeted amount of Rs100 billion or more. The government, however, rejected the bids of commercial banks for 10 and 15-year PIBs apparently after they demanded significantly higher yields compared to expectations. Commercial banks offered total bids of Rs614 billion against the auction target of Rs100 billion, according to the auction data. Abbas, however, said the uptick in cut-off yields was not huge, while the borrowing was close to the target. The cut-off yields on the long-term (three- to 30-year) PIBs remained lower compared to the short-term (three to 12-month) treasury bills.

Source: The Express Tribune May 26, 2022 09:11 UTC