The State Bank of Pakistan on Friday invited tenders for the long-term bonds and announced its quarterly schedule for auction, including the target. The State Bank would sell rupees one billion each for three, five and 10 years tenors bonds. Tenders for the sale of PIBs, set for Quarter 2: October-December 04, was invited from the primary dealers on November 11.
The coupon rates for the PIBs, to be sold in the auctions, are six percent, seven percent and eight percent for three, five and 10 years' maturities respectively.
For second and third auctions of PIBs, the date would be announced later, but the amount of target amount for the auction would be rupees three billion for the second quarter and rupees five billion for the third auction.
In the third auction, along with three, five and 10 years maturity, 15 and 20 years' bonds would also be sold.
With the announcement of PIBs schedule, aggressive buying was noted in the 10-year bonds and its yield slipped by 30 to 40 basis points. The yield on 10-year bond remained fluctuating between 7.90 and eight percent on Friday.
Last year, the State Bank sold PIBs worth Rs 96 billion. The small amount reflected the government's lower need for borrowing for the 2004-05 financial year.