KARACHI, March 10: The State Bank of Pakistan on Monday accepted bids for Rs2.1 billion in its open market operation of Market Treasury Bills, while the bids offered amounted to Rs9 billion.

The rate of return is 8.99 per cent, said a SBP statement here on Monday.

Meanwhile, the SBP, through primary dealers, has invited tenders for the sale of Market Treasury Bills from March 11 to 12, up to 11.15 am.

There are three categorie\s of these MTBs: 3-month with maturity on June 5, 2008, 6-month with maturity on September 11, 2008 and 12-month with maturity on March 12, 2009.

The tenders would be opened at 11.30 am on March 12 and the results of the auction would be announced the same day.

The successful bidders would be required to deposit the amount of accepted bids the next day.

The pre-auction target is Rs30 billion, the SBP said.

Short-term money rates rose on Monday after the central bank sold Treasury bills (T-bills) to mop up liquidity from the market, dealers said.

Overnight call rates ended at 9 percent, up from Saturday’s close of 8.50 per cent.

“Rates rose after the State Bank conducted the repo,” said a brokerage dealer.—Agencies