December 19, 2006	Tuesday	Ziqa'ad 27, 1427

KARACHI, Dec 18: The State Bank of Pakistan (SBP) on Monday announced that it would sell Rs80 billion worth of three-, six- and 12-month treasury bills on Wednesday. However, the money market dealers did not expect any change in the cut-off yields.

“At present there is no need to increase the cut-off yield especially after frequent statements from the State Bank that tight monetary policy would be followed,” said a dealer.

He said that enough liquidity was available to meet the demands and the current interest rate scenario looked stable.

“There is no requirement for further tightening of monetary policy as it may serve negatively while the prevailing status looks suitable for both the State Bank and the market,” he said.

Bankers said most of the investment would either be made into 12-month and six-month T-bills and that would reflect the confidence of investors in the long-term stability of the interest rate.