KARACHI: The government raised Rs472.1 billion from the auction of fixed-rate Pakistan Investment Bonds (PIBs) on Wednesday, surpassing the target of Rs350 billion, with yields remaining largely unchanged.

The SBP received bids amounting to Rs887.6 billion. A major amount was raised in a 10-year bond, with Rs248.39 billion allocated. The cut-off yields hovered in the range of 11.88-12.79 per cent.

According to the auction results released by the State Bank of Pakistan (SBP), the yield on the five-year paper fell by three basis points to 12.34 per cent. The bids were rejected for the two-year and three-year PIBs. However, the yields on a 10-year paper stayed flat at 12.79 per cent.

The SBP halted its easing cycle last month, maintaining the benchmark policy rate at 12 per cent due to concerns about inflation risks linked to volatile food prices and rising global tariffs. Since June 2024, the central bank has cut its key interest rate by 1,000 basis points (bps).

In March, the consumer price index inflation slowed to 0.69 per cent, marking its lowest rate in more than seven years. The finance minister has hinted at the possibility of further interest rate cuts, noting that substantial room remains despite already significant declines. However, analysts expect interest rates to remain unchanged, with any potential rate cuts likely occurring in the latter half of 2025.