The State Bank of Pakistan (SBP) on Thursday lifted the surplus liquidity from the money market through open market operation (OMO), but the rates remained under pressure. The SBP had scrapped all bids for 6-month treasury bills (TBs) a day earlier, as the demand for higher yield was not acceptable to the SBP, while the amount offered was also much lower than the target.
It had set target of Rs 30 billion for six-month T-bills, which was scrapped, but it raised Rs 27.450 billion on Thursday.
The SBP raised Rs 26.450 billion for one week and Rs 1 billion for two weeks, which means the Rs 26.450 billion would join the market next week.
Another maturity of Rs 10 billion scheduled for next week thus, the liquidity would touch a mark of Rs 36 billion.
Market experts said the outflow of Rs 27.450 billion slightly affected the money market rates, and the overnight rate improved from 0.75 percent to 1.25 percent. Three-month rate was 3.90 percent, six-month 4.20 percent, and 4.70 percent for one-year.
Money experts said the market would remain liquid, and the rates would continue to prevail in the same range.
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