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The State Bank of Pakistan (SBP) on Monday carried out Open Market Operation (OMO), and raised Rs 3.050 billion at the rate of return of 1.25 percent per annum.
The SBP raised Rs 1.8 billion for one week while Rs 1.2 billion for two weeks. Market experts said that despite the OMO the liquidity remained dominant in the money market. However, the overnight rates slightly moved up from 0.25 percent a day earlier to 0.5 percent after the OMO. Only the last week, the market was short of liquidity, and the overnight rate was 7.4 percent.
Meanwhile, SBP has invited tenders for the sale of T-bills worth Rs 65 billion. The huge auction of T-bills would be in the wake of similar amount of inflow scheduled this week. It would sell T-bills of three-month and 12-month maturity.

Copyright Business Recorder, 2004

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