KARACHI, Dec 23: The State Bank of Pakistan on Saturday siphoned off the liquidity it left in the market after poor sale of treasury bills in the auction held on last Wednesday.

The SBP sucked up Rs35.450 billion through open market operation at the rate of eight per cent and 8.55 per cent. The money was picked up for four days and 39 days. An amount of Rs30.950 billion was raised for four days and the rest for 39 days.

In the last auction of treasury bills, banks avoided participation and T-bills worth Rs16.4 billion could be sold, though the SBP target was Rs80 billion. Some of the surplus liquidity was soaked by the Pakistan Investment Bonds (PIBs) on Thursday while the rest was in the market.

“The huge surplus due to inflow of Rs100 billion was pressuring the money rate to decline at the lower levels,” said a money dealer.

The dealers were expecting more OMOs as market still has excess liquidity.