20 January 2004	Tuesday	27 Ziqa'ad 1424

KARACHI, Jan 19: The State Bank on Monday sold Rs6.2 billion 15-year and 20-year Pakistan Investment Bonds (PIBs) meeting the target of Rs6 billion.

This was the first auction of these bonds issued to extend the long-term yield curve and set a benchmark for the banks to price longer term loans, particularly in the housing sector.

The auction results released by the State Bank shows that it picked up Rs3.3 billion through sale of 15-year bonds at a cut-off yield of 7.8 per cent and Rs2.9 billion by selling 20-year bonds at 8.7 per cent. The coupon rates for these bonds are nine and 10 per cent, respectively.

The auction had attracted total bids worth Rs12.12 billion, of which the central bank accepted Rs6.2 billion bids and rejected the rest.