Overnight rates took a long jump on Thursday as the money market ran short of liquidity after raising Rs 29.5 billion by the State Bank of Pakistan through auction of six-month Treasury Bills on Wednesday.
The money market experts said that the overnight rates touched 7.5 percent against just 0.5 percent on Wednesday.
On the other side, crunch of liquidity pushed several banks to approach the discount window of the State Bank to meet their immediate requirements.
The banks availed of Rs 5.5 billion from the discount window. Market sources said that the banks might go for more funds to meet their weekly cash reserves with the State Bank. They estimated that the market was short of Rs 12-15 billion.