KARACHI: The government raised Rs639 billion through the auction of Pakistan Investment Bonds (PIBs) on Friday — more than double the Rs300bn target — amid strong demand from banks for long-term papers, supported by the State Bank’s decision to keep interest rates unchanged.

Despite a real interest rate margin of around 7pc — between the 11pc policy rate and current inflation — banks continued to chase long-tenor bonds, reflecting expectations that rates may stay higher for longer.

The sizeable........

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