The Pakistan Investment Bonds Auction raised Rs639 billion, more than double the target, as banks showed strong demand for long-term papers.The latest Pakistan Investment Bonds Auction raised Rs639 billion on Friday, significantly exceeding the Rs300 billion target, as banks aggressively invested in long-term government papers following the State Bank’s decision to keep interest rates steady. Despite a real interest rate spread of approximately 7 percent, the difference between the 11 percent policy rate and prevailing […]
The latest Pakistan Investment Bonds Auction raised Rs639 billion on Friday, significantly exceeding the Rs300 billion target, as banks aggressively invested in long-term government papers following the State Bank’s decision to keep interest rates steady.
Despite a real interest rate spread of approximately 7 percent, the difference between the 11 percent policy rate and prevailing inflation, banks continued to favour long-tenor bonds. This aggressive participation in the Pakistan Investment Bonds Auction reflects expectations that interest rates will remain elevated for an extended period, prompting financial institutions to lock in higher yields.
