KARACHI: The central bank on Monday injected Rs 36.47 billion into the money market through five-day reverse repo.

Despite the intervention of the central bank, the commercial banks borrowed Rs 7.17 billion from the State Bank’s discounting window. The SBP injected money at 12.61 percent.

“The money market was short in liquidity because of the Ramazan’s outflow,” said a money market expert. This liquidity shortage would persist in the market till Eid-ul-Fitr.

The central bank has given a pre-auction target of Rs 95 billion for the next T-bill auction to be held next Wednesday. There would be a maturity of around Rs 98 billion in the money market on Thursday. At the same day, there is also an outflow of Rs 6.52 billion of the tender for Sale of 3-year Ijara Sukuk.

“The central bank made such a big injection only to improve liquidity in the money market,” said Naeemul Hassan, money market head at Invest Capital and Securities. “The overnight rate stayed at 12.90 percent in the money market,” he added.

Dealers said the primary dealers demand Rs 43.97 billion from the central bank to cover their shortage and cash requirement.

“In the T-bills auction yields are likely to remain stable. Even if there is an increase, it will only be marginal,” said a dealer.