May 19, 2006	Friday	Rabi-us-Sani 20, 1427

KARACHI, May 18: The State Bank of Pakistan (SBP) after a gap of two years had resumed selling of Pakistan Investment Bonds (PIBs) while the participation was beyond market expectations.

The central bank on Thursday raised Rs10.161 billion through PIBs auction while bids offered were in the tune of Rs16.012 billion. The bank picked up Rs3.240 billion for 10-year

PIBs at a cut-off yield of 9.87 per cent.

Highest amount of Rs4.020 billion was raised for 5-year PIBs at a cut-off yield 9.66 per cent. Lowest amount was raised for 3-year PIBs at a cut-off yield 9.45 per cent.

Market experts said that the participation was higher than the expectation especially the interest shown for the investment in 10-year bonds was surprising.

Banks, facing acute shortage of liquidity, have been complaining that most of the deposits are coming for short-term or current saving accounts. Brokers said that it was a change that banks came up to invest for a longer tenure like 10-year maturity while receiving inflows for a short-term period.