Pakistan's 1-year T-Bill rate hits 3-year low

ISLAMABAD: Pakistan’s 1-year Treasury Bill (T-Bill) rate has fallen to a three-year low, now standing at 11.34%. This marks a significant drop from its peak of 24.73% just 18 months ago, driven primarily by a decrease in inflation, according to Topline Securities.

During a recent T-Bill auction on Wednesday, cut-off yields for the 3-month, 6-month, and 12-month T-bills were all lower by 20 basis points (bps), 39 bps, and 45 bps, respectively. The new rates stood at 11.5887%, 11.4048%, and 11.3459%.

The auction was highly oversubscribed, with bids totaling Rs. 1,401 billion, far surpassing the target of Rs. 350 billion. The State Bank of Pakistan accepted Rs. 326 billion worth of bids, reflecting strong investor demand.