Govt’s 30 and 20 year T-bonds attract Rs. 28.85bn

The government raised Rs. 13.1 billion yesterday via a 30-year and 20-year Treasury bond issue, both of which were more than 2.2 times oversubscribed with bids amounting to Rs. 28.85 billion, data released by the Public Debt Department of the Central Bank showed.

The Central Bank offered Rs. 8 billion in 20-year Treasury bonds which attracted bids amounting to Rs. 17.7 billion with the bank settling for Rs. 8.05 billion at 12.15 percent. The bonds mature in 2033. A 20-year bond issued last year went for 11 percent.

30-year Treasury bonds maturing in 2043 worth Rs. 5 billion attracted bids amounting to Rs. 11.15 billion with the bank accepting Rs. 5.05 billion at 12.50 percent. The country’s first 30-year bond issued last month, which was three times oversubscribed, also went for 12.50 percent.

Treasury dealers said these long term bonds create little interest in the secondary bond market and grabbed by end-users who need to hedge long term liabilities such as provident funds and life insurance companies.

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