Islamabad, Nov 9: 1-Year Sukuk Cut-Off Yields Halve in Six Months as Interest Rates Decline. The cut-off yields on 1-year Sukuk have reduced by almost 50% within just six months, falling below 11 percent.
In approximately six months, the cut-off yield for 1-year Sukuk has decreased from over 20 percent to 10.99 percent. As reported by Toploiine Securities, this decline is attributed to dropping interest rates, which are a result of subsiding inflation.
On Monday, the State Bank of Pakistan lowered the interest rate by 250 basis points to 15 percent, effective from November 4, 2024.Overall, the central bank has reduced the policy rate by 700 basis points across the last four monetary policy sessions. The SBP has indicated that inflation has declined more rapidly than anticipated and is now approaching its medium-term target range as of October.
