he ministry of finance through the State Bank of Pakistan (SBP) raised a total amount of Rs 16.412 billion including non-competitive bids against the sell of 3, 5, 10, 15, 20 and 30-years Pakistan Investment Bonds (PIBs) at slightly lower cut-off yields compared to the previous auction here on Saturday.

The SBP said it sold worth Rs 1.050 billion three-year bonds at 9.33 percent from previous rates of 9.36 percent, worth Rs 800 million of five-year paper at 9.61 percent from 9.76 and Rs 6.650 billion in 10-year bonds at 10.13 percent from 10.19.

In the long-terms bonds auctions, the SBP raised Rs 950 million in 15-year at 10.98 from 10.98, Rs 1.50 billion in 20-years at 11.19 percent and Rs 4.50 billion in 30 years bonds at 11.59 percent.

Zafar M Shaikh, additional director general, ministry of finance said, “Overwhelming response in this auction is due to awareness in the corporate sector, both government and non government institutions have diversified their liquid assets into long term government paper in order to get a better return.” He said ministry of finance is fully committed to cater the need and to provide all out support to promote our domestic debt market.

The analysts said the primary dealers offered Rs 49.1 billion at higher rates, but the State Bank accepted bids at lower side.

Posted: 04|22|07 at 9:36 am. Filed under: Auction News.