KARACHI, Jan 19: The State Bank on Wednesday sold Rs76.45 billion three-month treasury bills and Rs1.3 billion one-year bills at the cut-off yields of 4.33 per cent and 4.99 per cent respectively.

The weighted average yields on the three-month bills were 4.14pc and 4.95pc, up 22 basis points and 52 basis points respectively from the previous levels. The central bank thus sold Rs77.75bn treasury bills in total, lower than the demand for Rs82.5bn but much higher than the target of Rs60bn.

The bills were sold against an inflow of Rs90bn due on Monday when the markets will reopen after the Eidul Azha holidays. The settlement of the T-bills auction held on Wednesday would also take place on Monday.

Senior bankers said the central bank sold more than the targeted amount of T-bills to raise their yields by a wider margin to indicate that it was willing to further tighten interest rates to curb inflation. The central bank, in its monetary policy statement issued later in the day, made a similar statement.