Govt raises Rs974b in PIB auction

Gold prices slip Rs1,000 per tola despite global gains; rupee steady

KARACHI:

The government mobilised Rs973.8 billion through the auction of Pakistan Investment Bonds (PIBs) on Wednesday, reflecting strong investor interest despite expectations of steady rates in the near term.

According to results released by the State Bank of Pakistan (SBP), bids worth Rs1.44 trillion were received against various maturities, including two-year, three-year, five-year, 10-year and 15-year fixed-rate instruments.

The government accepted a total of Rs771.9 billion in competitive bids, while total acceptance, including non-competitive bids and short selling, reached Rs792.7 billion (face value). The total realised amount, including accrued interest, stood at Rs973.84 billion.

Cut-off yields edged higher across most tenors, signalling the cautious stance of investors amid persistent fiscal challenges and inflationary pressures. The two-year PIB was sold at a cut-off yield of 11.4792%, while yields on three-year and five-year papers were 11.4900% and 11.6390%, respectively. The 10-year bond fetched 12.0005% and the 15-year instrument settled at 12.2500%.

The auction saw the highest participation in the 15-year PIB, attracting bids worth Rs539.5 billion, though only Rs340 billion was accepted.

Furthermore, the Pakistani rupee appreciated one paisa against the US dollar on Wednesday, closing at 280.86 in the inter-bank market. The currency has depreciated 0.82% since the start of the current calendar year but has appreciated 1.03% so far in the current fiscal year, according to Ismail Iqbal Securities.

Meanwhile, gold prices in Pakistan slipped even as international bullion rates climbed over 1%, with investors shifting towards safe-haven assets amid stronger-than-expected US private payrolls data.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped Rs1,000 per tola, settling at Rs419,362. Similarly, the rate for 10-gram gold fell Rs857 to Rs359,535.

On Tuesday, the precious metal had already lost Rs3,500 per tola, closing at Rs420,362.

Commenting on the trend, Adnan Agar, Director at Interactive Commodities, said there had been "no significant new development" in the gold market. "Prices were range bound between $3,900 and $4,000 per ounce. Gold hit a low of $3,929 and a high of $3,987, trading near $3,980. The market is making lower lows but remains confined within this range," he noted.

He added that the $3,930-3,910 zone remained a key support area where prices often rebounded, only to retreat again near the $4,000 level. "Unless there's a decisive breakout, gold is expected to continue oscillating within this band."