The government kept increasing its long-term debt while investors remained glued to the Pakistan Investment Bonds (PIBs) in Wednesday’s auction.
The government picked up entire amount offered by the banks for the PIBs while most of the money was invested in the three-year bonds.
According to the State Bank, the investors offered Rs237 billion for the PIBs and the government raised Rs236bn. Banks and other corporate sector entities invested Rs178.5bn for three-year PIBs.
The investors have been placing their money for long-term bonds as the yield is much higher than the policy interest rate while low inflation is also helping them earn higher real profit.
