Overnight money rates remain pegged at the top level of 8.9 percent, just below the discount rate of 9 percent, at which the banks borrowed Rs 10.615 billion from the State Bank of Pakistan''s discount window.
"The market has been pretty tight in the last few days, and after the outflow today, it was left with very little cash," a dealer at a local bank said.
At an auction on Tuesday, the central bank sold Rs 144.15 million of its benchmark six-month T-bill at a cutoff yield of 8.1388 percent.
At the same auction, it sold Rs 346.15 million of three-month bills and Rs 6.574 billion of the 12-month paper at the cutoff yields of 8.1000 percent and 8.7784 percent, respectively.
The settlement of the auction was done on Thursday, as all banks were closed for a public holiday on Wednesday.
"There will be more discounting tomorrow as banks would need cash to meet their reserve requirements," another dealer said.
The banks are required to keep a minimum of 5 percent of their cash reserves with the central bank at the weekend.