The banking sector continued to find itself short of liquidity last week.a after having chased high-yielding, longer tenured government debt for months . This, in turn, affected its participation in last Wednesday’s Treasury bill auction.
Hoping to raise Rs100bn from the auction, the government was offered only Rs67.649bn. The central bank accepted all bids.
Investors showed higher interest in 12-month T-bills, which fetched Rs58.296bn at a cut-off yield of 9.4951pc, followed by six-month T-bills with Rs9.225bn at 9.4940pc, and three-month T-bills with Rs0.129bn at 9.4568pc. The cut-off yield remained unchanged for all three bills from the previous auction.
According to the weekly statement of position of all scheduled banks for the week ending November 28, total assets of all scheduled banks stood at Rs10,937.121bn, up 1.72pc over the preceding week’s figure of Rs10,753.033bn.
