An auction of Pakistan invest Bonds of different tenors was held on 18th November 2015. The highest bids and acceptance was for 3-year bonds with a coupon rate of 8.75 percent. No bids were received for 2-year bonds and the acceptance for ten year bonds was dismally low at RKR 200 million. While this suggested that further reduction in discount rate looks lean, it also hints that the government is still worried about banks’ liquidity.
(Amount in PKR million)
Tenor | Face Value | Realized Amount | Accrued Interest | Total Realized Amount | Price Range (per Rs.100) |
03 Years | 68,442.100 | 70,914.958 | 883.576 | 71,798.534 | 103.93 – 102.74 |
05 Years | 30,220.000 | 31,491.766 | 412.429 | 31,904.195 | 104.98 – 102.84 |
10 Years | 5,050.000 | 5,215.875 | 72.645 | 5,288.520 | 103.69 – 102.43 |
20 Years | N O B I D R E C I E V E D | ||||
Total | 103,712.100 | 107,622.599 | 1,368.650 | 108,991.249 |
Out of the above bids, the accepted bids were as under: (Amount in PKR million)
Tenor | Face Value | Realized Amount | Accrued Interest | Total Realized Amount | Cut-off Price
(per Rs.100) |
Cut-off Yield (YTM)
%p.a. |
Effective Weighted Average Yield %p.a. |
03 Years | 37,589.100 | 39,000.048 | 485.269 | 39,485.317 | 103.66 | 7.0270 | 6.9842 |
05 Years | 8,895.000 | 9,317.510 | 121.395 | 9,438.905 | 104.50 | 7.9999 | 7.9328 |
10 Years | 200.000 | 207.380 | 2.877 | 210.257 | 103.69 | 9.1507 | 9.1507 |
20 Years | N O B I D R E C I E V E D | ||||||
Total | 46,684.100 | 48,524.938 | 609.541 | 49,134.479 |