September 17, 2002	Tuesday	Rajab 9, 1423

KARACHI, Sept 16: The State Bank on Monday mopped up Rs9.8 billion through four-week repo of treasury bills at a maximum yield of 5.70 per cent.

Senior bankers said the open market operation conducted for this purpose generated Rs10.2 billion bids for four-week T-bills of which the central bank accepted Rs9.8 billion and rejected the remainder.

They said the OMO also attracted Rs12.8 billion bids for 12-week repo of T-bills but the SBP scrapped all of them without assigning any reason.

The bankers said despite an outflow of Rs9.8 billion from the system the inter-bank market had enough liquidity on close with the overnight call rates ranging between 2-3 per cent against the State Bank discount rate of 9 per cent.

They said the central bank left some liquidity into the market to help banks to participate fully in the forthcoming auction of T-bills and Pakistan Investment Bonds (PIBs).