Govt raises Rs965bn through T-bills’ auction

KARACHI: The government raised Rs965 billion from the auction of Market Treasury bills (T-bills) on Wednesday, surpassing the target of Rs850 billion, with yields falling slightly on some tenors, according to the auction result from the central bank on Wednesday.

The cut-off yields on one-month T-bills decreased by seven basis points (bps) to 12.32 per cent. The yields on the six-month paper also fell by 1bps to 11.99 per cent. However, yields for the three-month and 12-month tenors remained unchanged.

In the Pakistan Investment Bonds (floater) auction, the government raised Rs261 billion (competitive and non-competitive) against a participation of Rs1.59 trillion and a target of Rs400 billion.

The SBP halted its easing cycle last month, maintaining the benchmark policy rate at 12 percent due to concerns about inflation risks linked to volatile food prices and rising global tariffs. Since June 2024, the central bank has cut its key interest rate by 1,000 basis points (bps).

In March, the consumer price index inflation slowed to 0.69 per cent, marking its lowest rate in more than seven years.