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.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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