At the close of the record November 28, 2024, the 6-month Karachi Inter-Bank Offered Rate (KIBOR) showed a figure of 12.88 percent as per data provided by Bloomberg.
This benchmark rate is 212 basis points lower than the central bank’s key lending rate of 15 percent.
As per Topline Securities, the 6-month KIBOR is down 49 basis points, its lowest level in 31 months, after a mid-week secondary market auction in which the government raised resources at rates below the central bank’s policy rate of Rs.616 billion.
Also Read: Masato Kanda Elected as 11th President of Asian Development Bank
The bond auction on Wednesday saw cut-off yields for 3-month, 6-month, and 12-month T-bills come down by 70bps, 61bps, and 85bps, respectively, to 12.9974 percent, 12.8948 percent, and 12.3500 percent. Three-month yields have fallen to their lowest mark since April 2022, whereas both six-month and 12-month yields have sunk to levels only seen in March 2022.
The auction attracted bids of Rs 2,494 billion against the target of Rs 800 billion, ensuring a bid-to-cover ratio of 3.1x, with the SBP accepting only Rs 616 billion, falling short of the target.