6-Month KIBOR Drops to Lowest Level in 17 Months

The 6-Month Karachi Inter-Bank Offered Rate (KIBOR), a benchmark for lending to consumers and businesses, fell by 37 basis points (bps) on a day-on-day (DoD) basis after this week’s domestic bond performance. The 6-month KIBOR clocked in at 18.91 percent, the lowest since February 17, 2023, after the mid-week T-Bill auction which saw the government raise Rs. 355 billion debt at rates as low as 17.59 percent. On Wednesday, the government raised Rs. 39 billion for the three-month T-Bill in the competitive auction. It also raised Rs. 87 billion and Rs. 133.6 billion for the 6-month and 12-month T-Bills respectively. A further breakdown of the official numbers indicates that the government also raised Rs. 95.07 billion through non-competitive bids. This took the total amount raised during the auction to Rs. 354.67 billion.