KARACHI, Feb 18: The State Bank on Wednesday sold Rs39.55 billion three-month and one-year treasury bills against the target of Rs41 billion. According to the auction results announced by the central bank, it sold Rs23.25 billion three-month bills at a weighted average yield of 1.49 per cent and Rs16.30 billion one-year bills at 1.97 per cent.

At the last auction of three-month and one-year bills held in January, the SBP had kept the weighted average yield at 1.48 per cent for three months and 1.96 per cent for one year.

Wednesday's auction generated total bids of Rs62.25 billion, of which the central bank accepted Rs39.55 billion and rejected the rest. Senior bankers said it slightly missed the auction target of Rs41 billion to indicate that it would not allow a significant increase in the TBs yield.

But by allowing the weighted average yield to inch up it reinforced its earlier signal that the TBs rates have, however, bottomed out. Bankers said overnight call rates closed around four per cent after the auction held to offset partly the total inflow of Rs57 billion in the market due on Thursday.