The State Bank on Wednesday raised over Rs 18 billion through the auction of Treasury Bills, but the outflow could not ease the pressure of surplus liquidity in money market.
The SBP remained close to its target of Rs 20 billion and sold 6-month T-bills worth Rs 18.435 billion at a little improved cut-off yield.
The cut-off yield on 6-month T-bills improved from 1.73 percent to 1.78 percent, an increase of 5 basis points.
Experts said the money market remained liquid despite outflow of Rs 18.4 billion from the system.
The surplus liquidity did not allow the overnight rate to see an uppish change and remained stick to 0.2 percent. On last Friday, the overnight rate was the same.
Experts said the market was still long with Rs 10 to Rs 12 billion and expressed hope that the State Bank might conduct Open Market Operation to pick up surplus liquidity.