KARACHI, July 16: The cut-off yield on 12-month Treasury bills rose at an auction on Wednesday to 11.8392 per cent from 11.7891 per cent previously, the central bank said.

The weighted average yield on the 12-month paper came at 11.8294 per cent, up from 11.7841 per cent in the previous auction on July 2, the State Bank of Pakistan said.

The cut-off yield on the 3-month paper came at 11.7825 per cent, up from 11.5534 per cent, and the weighted average yield rose to 11.6528 per cent from 11.4512 per cent previously.

The central bank received no bids for the 6-month paper in the auction held on Wednesday and it also received no bids in the last auction on July 2.

It was the fourth T-bill auction since the State Bank increased its key discount rate to 12 per cent from 10.5 per cent on May 22, and the second T-bill auction in the 2008-09 fiscal year.

The bank said it sold Rs3.43 billion worth of the 12-month paper and Rs49.18 billion of the 3-month paper, after receiving total bids of Rs54.40 billion.

It had a pre-combined auction target of Rs60 billion.

Settlement will take place on Thursday.—Reuters