January 29, 2008	Tuesday	Muharram 19, 1429

KARACHI, Jan 28: The State Bank of Pakistan on Monday announced to sell treasury bills worth Rs65bn and the bids will be opened on January 29 to 30.

The SBP will sell 3-month, 6-month and 12-month treasury bills. The cut-off yield on both 6-month and 12-month T-bills has reached close to the discount rate.

The decision to siphoning off huge liquidity from the market strengthened the speculation that the SBP may opt for further increase in the discount rate. The discount rate which provides three-day borrowing facility to the banks is currently at 10 per cent.

Bankers said the rate cut by the US Federal Reserve by 75 basis points did not impact Pakistani market. There is no chance that the SBP would opt to soft the tight monetary policy in the wake of US interest rate cut.