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Tue 5 Apr 2016 01:49 PM

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Qatar central bank sells T-bills for first time in 2016

Auctionis a sign that pressure on banking sector liquidity due to low oil prices has eased somewhat

Qatar central bank sells T-bills for first time in 2016
Qatar money, Qatar currency, Qatar finance, Qatar banking, Qatar finance

Qatar's central bank sold 1.5 billion riyals ($412 million) of Treasury bills in a monthly auction on Tuesday in a sign that pressure on banking sector liquidity due to low oil prices has eased somewhat.

The central bank had cancelled all its previous monthly T-bill auctions this year after banks bid at high rates following a tightening of liquidity due to low oil and gas prices, which have shrunk the amount of new petrodollars flowing through the system.

But Tuesday's auction saw all of the three-, six- and nine-month bills on offer sold, with bids totalling 2.05 billion riyals, the central bank said in a statement.

The three-month bills were sold at a yield of 1.31 percent, down from 1.48 percent at the last three-month bill sale in December, while the six-month bills were sold at 1.27 percent against 1.75 percent and the nine-month bills at 1.38 percent against 2.00 percent.

Bankers said cash from recent T-bill and bond maturities had helped to improve liquidity.

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