Islamabad, Sep 22: Pakistani bond yields have dropped to a 2-year low, with notable declines across various maturities. The 1-year bond is now trading at 15.21%, the 3-year bond at 12.98%, the 5-year bond at 13.17%, and the 10-year bond at 12.87%.
According to a brief review by Topline Securities, bond yields have fallen by 374 to 952 basis points from their peak in September 2023.
This decline is accompanied by a decrease in the 6-Month KIBOR, now standing at 16.29%, also a 2-year low.
The reduction in bond yields reflects improved market conditions, driven by falling inflation and a more stable economic outlook.
Lower yields typically enhance equity valuations, as they reduce the discount rate applied to future cashflows, increasing present value and making stocks more appealing to investors.
