6-Month KIBOR Down to 31-Month Low

The 6M Karachi Inter-Bank Offered Rate (KIBOR) is currently trading blows at 12.88 percent as of November 28, 2024, according to Bloomberg data. The benchmark KIBOR is 212 bps lower than the central bank’s key lending rate which stands at 15 percent. According to Topline Securities, the 6-month KIBOR is down by 49 basis points, the lowest in 31 months after the mid-week secondary market auction which saw the government raise Rs. 616 billion debt at rates below the central bank’s policy rate. Overall, the 3M, 6M, 9M, and 12M KIBOR rates decreased by 47bps, 49bps, 63bps, and 72bps. The 3M and 6M rates are at their lowest level since April 2022. The 1Y KIBOR is at its lowest level since March 2022. Wednesday saw the bond auction see cut-off yields for 3M, 6M, and 12M T-bills down by 70bps, 61bps, and 85bps, respectively at 12.9974 percent, 12.8948 percent, and 12.3500 percent. The 3M yield has reached its lowest level since April 2022, while the 6M and 12M yields have dropped to levels last seen in Mar’22. The auction received bids amounting to Rs. 2,494 billion against a target of Rs. 800 billion, resulting in a bid-to-cover ratio of 3.1x. The SBP accepted Rs. 616 billion, falling short of the target.