KARACHI, Sept 10: The cut-off yield on three-month Treasury bills was flat at an auction on Wednesday at 12.5631 per cent, the State Bank of Pakistan said.

The weighted average yield on the 3-month paper came at 12.5631 per cent, up from 12.3874 per cent in the previous auction on August 27, the central bank said.

The SBP said it rejected all bids for its benchmark 6-month paper and received no bids for its 12-month paper in the Wednesday auction.

The central bank increased its key discount rate to 13.0 per cent from 12.0 per cent in July.

The bank said it sold Rs14.76 billion of the 3-month paper after receiving total bids of Rs46.45 billion.

It had a pre-combined auction target of Rs35 billion.

Settlement will take place on Thursday.

In the currency market, dealers said the rupee closed at 76.50/60 to the dollar in dull trade, compared with Tuesday’s close of 76.45/55.

Dealers said some trading was seen at 76.65/70 levels because of some import payments but overall activity was dull.—Reuters