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State Bank sets Rs 30 billion treasury bills auction target

KARACHI (January 21 2003) : The State Bank has set the target of Rs 30 billion for the sale of Treasury Bills, a move to protect the banking system from over-liquidity.

The State Bank on Monday announced auction of Treasury Bills worth Rs 30 billion on Wednesday next.

These T-bills will be of 3 months and 12 months maturity.

Money market experts said that the picking-up of such huge amount would support the money market rates currently hovering at the lowest level.

The overnight rate in the money market was 0.5 percent on Monday, a clear reflection of over-liquidity of the market.

“Though the T-bills' returns have dropped significantly but the banks have little option to avoid participating in these low-yield T-bills,” said a money market expert.

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