Pakistan Raises Rs 392.8 Billion in PIB Auction as 3 and 5 Year Yields Fall (4 November 2026)

Pakistan's government sold Rs 392.8 billion of Pakistan Investment Bonds (PIBs) on 4 November 2026, against a target of Rs 350 billion. It borrowed for three and five years at about 0.10 point less than in October, even though the State Bank raised its policy rate to 12% in between. The 3 year cut-off yield fell to 12.638% and the 5 year to 12.80%.

Banks and other dealers offered Rs 1.30 trillion, almost four times the target and about 53% more than at the October auction. We read the State Bank of Pakistan's auction result for 4 November, settled on 5 November, and its home page on 6 November 2026. Below are the yields, the bids, what was accepted for each bond, and how a saver can buy at the same rate.

The government raised Rs 392.8 billion in PIBs on 4 November

The PIB auction on 4 November 2026 raised Rs 392.8 billion at face value. Of that, Rs 366.5 billion came from competitive bids by dealers, Rs 19.1 billion from non-competitive bids, the route most individual savers use, and Rs 7.25 billion from short selling in the 2 year bond.

A PIB is a fixed-rate government bond. The government borrows the money and pays it back on a set date, with interest every six months on most tenors. Banks hold most of them, but anyone with an account at a bank that offers them can buy. The preview of this auction, with every 2026 cut-off yield, is in the 4 November PIB auction target.

3 and 5 year yields fell about 0.10 point from October

The 3 year cut-off yield fell 10.8 basis points to 12.638% and the 5 year fell 10.0 basis points to 12.80%. The 10 year stayed at 12.85% and the 2 year barely moved, at 12.79%. All 15 year bids were rejected again. A basis point is one hundredth of a percentage point.

This is the first fall in 3 and 5 year cut-off yields since the 2 July auction. Yields rose at the August and September auctions, and from 18 September to 7 October they rose by 26 to 41 basis points, as shown in the 7 October PIB auction. Now the policy rate is higher, at 12% from 27 October, but the 3 and 5 year yields are lower. All four accepted yields are 0.64 to 0.85 point above the policy rate, down from 1.25 to 1.40 points above the old 11.5% rate in October.

Bids reached Rs 1.30 trillion, almost four times the target

Dealers offered Rs 1,295.5 billion at face value, against a Rs 350 billion target. The 3 year bond alone drew Rs 621.2 billion of bids. The government accepted Rs 165.3 billion of 3 year bonds, more than twice its Rs 75 billion target, and Rs 159.9 billion of 5 year bonds against Rs 100 billion.

The 2 year bond went the other way. Dealers bid Rs 110.0 billion, but the government took only Rs 3.75 billion of competitive bids, plus non-competitive bids and short selling, for Rs 11.5 billion in all. A government that turns down most of the bids is refusing to pay the yields they asked for.

Lower bond yields and a lower KIBOR came in the same week

The day after this auction, the 6 month KIBOR, the rate most bank loans follow, fell 0.11 point to 12.56%. The 1 year KIBOR fell 0.12 point. The State Bank's weighted average overnight repo rate was 11.70% on 4 November, below the 12% policy rate. We set these side by side. The State Bank gave no reason for any of them.

For borrowers, lower government borrowing costs tend to feed into KIBOR over time, and then into car, home and business loans on floating rates. For savers, they point to lower yields on new bonds and bills. The KIBOR sheet is in KIBOR on 5 November, and the rate decision in the SBP rate rise to 12%.

Savers can buy PIBs at the same yield

Individuals do not bid against banks. They place a non-competitive bid through a bank and get the price the State Bank sets for non-competitive bids on auction day. Here is how one works:

1. Open an Investor Portfolio Securities (IPS) account at a bank that offers one.
2. Ask for a non-competitive bid for the PIB tenor you want before the bank's cut-off for the next auction.
3. The bank buys at the non-competitive price the State Bank publishes on auction day.
4. Coupon bonds pay interest into your account every six months. Zero coupon bonds pay nothing until maturity, when you get the full face value.

For example, at the 4 November non-competitive price of 98.6736, Rs 100,000 of the 3 year bond cost about Rs 98,674, plus interest already built up since the last coupon date. It pays Rs 6,000 every six months, because the coupon is 12% a year, and returns Rs 100,000 on 19 May 2029. The bank steps, minimums and the IPS account are set out in buying a PIB through an IPS account.

The next fixed-rate PIB auction is on 16 December 2026, the State Bank's home page shows. The next Treasury bill auction is on 11 November, covered in the 11 November T-bill auction.

Common questions

How much did Pakistan raise in the PIB auction on 4 November 2026?

Rs 392.8 billion at face value, including Rs 19.1 billion of non-competitive bids and Rs 7.25 billion of short selling. The target was Rs 350 billion.

What were the PIB cut-off yields on 4 November 2026?

12.79% for 2 years, 12.638% for 3 years, 12.80% for 5 years and 12.85% for 10 years. All 15 year bids were rejected.

Did PIB yields go up or down?

Down for 3 and 5 years, by about 10 basis points each. The 10 year was unchanged and the 2 year fell 0.5 basis point.

When is the next PIB auction?

The next fixed-rate PIB auction is on 16 December 2026, according to the State Bank.

Can an individual buy PIBs in Pakistan?

Yes. Open an IPS account at a bank and place a non-competitive bid, which is filled at the non-competitive price set at the auction.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked 6 November 2026. Amounts, cut-off prices, non-competitive prices and yields are from the State Bank of Pakistan's PIB fixed rate auction result for the auction held on 4 November 2026, settled on 5 November. The cut-off yields and the next auction date also appear on the State Bank home page. The 7 October yields and the targets are from the State Bank files recorded on our earlier pages. Basis point changes, the bid comparison and the Rs 100,000 example are our arithmetic.