September 27, 2007	Thursday	Ramazan 14, 1428

KARACHI, Sept 26: Amid prevailing tight liquidity position owing to Eid-related massive withrawals, banks still find it attractive to invest in long-term treasury bills.

The liquidity position had forced banks to borrow from the State Bank discount window, but on Wednesday they offered Rs24.7 billion to buy treasury bills of 12-month tenure.

The SBP did not receive any offer for three- and 6-month T-bills reflecting the confidence of investors on interest rates trusting the economic stability.

The SBP raised Rs21.2 billion through sale of 12-month papers which was much higher than the combined target of Rs10 billion. It did not change the cut-off yield on the paper at 9.399 per cent.

For the last three auctions the banks had not been investing in short-term T-bills. Dealers said the banks were comfortable with the one year treasury bills as the return was good and secured.

Dealers said the recent problem of liquidity shortage would be eased after Eidul Fitr.