State Bank mops up Rs.353 billion through auction of treasury bills

Pakistan central bank sold treasury bills worth Rs 353 billion for three months, six months and one year period.

The State Bank of Pakistan's treasury bills auction received bids worth Rs.420.3 billion from banks and financial institutions.

The central bank accepted bids valuing Rs.258.6 billion for three months treasury bills at cut-off rate of 5.99 percent. The bank also accepted bids for six months and one year treasury bills for Rs.91 billion and Rs.3 billion at cut-off yield at 6.010 percent and 6.038 percent respectively.

Lower participation in one year bills, according to analyst showed that bankers are hesitant to take long term position in government securities on expectation in any review of the central bank, the interest rate is likely to go up.

The next review of monetary policy has been expected in July, date would be announced some time second week of next month. The currently interest rate has been at 42 year low of 5.75 percent.