KARACHI, Oct 21: The State Bank has ignored the hope of banks to see an increase in treasury bills rates and picked up the targeted amount without any change in the rates.

The SBP held an auction on Saturday and sold T-bills worth Rs21.623 billion, a slight increase in the targeted Rs20 billion.

The significant was the large amount banks put with the six-month treasury bills. The banks also invested large amount with the 12-month T-bills.

Dealers said that the investment in long-term tenure of T-bills showed a stability in the interest rates, which might prevail for longer period than expected earlier by them.

The last increase in T-bills was made on August 2, 2006. The banks invested Rs196 million for three-month, Rs7.663 billion for six-month and Rs13.764 billion for 12-month papers.

The cut-off yield of six-month T-bills was 8.814 per cent, three-month cut-off yield was 8.6417 per cent and for 12-month T-bills cut-off yield was 9.0046 per cent.