The government successfully raised Rs772 billion in Market Treasury Bills (T-bill) auction, surpassing the target of Rs650 billion, according to results released by the State Bank of Pakistan (SBP).
The cut-off yields fell across all tenors, dropping between 9 and 15 basis points. The one-month T-bill yield decreased by 15 basis points to 11.09 percent, while the three-month and six-month yields fell by 9 basis points to 11.14 percent and 11.18 percent, respectively. The 12-month T-bill yield also dropped 15 basis points to 11.19 percent.
In the floating-rate Pakistan Investment Bonds (PIBs) auction, the government raised Rs187 billion against a target of Rs200 billion and a participation of Rs700 billion.
Earlier this month, the SBP cut its benchmark interest rate by 100 basis points to 11 percent, continuing a series of reductions from the record high of 22 percent seen last year. Since June 2024, the policy rate has declined by 11 percentage points.
Markets and analysts are now awaiting the SBP’s decision on interest rates in its upcoming meeting on June 16. Inflation trends also indicate easing pressure, with year-on-year inflation forecasted at 3.0 percent and month-on-month at 0.61 percent for May.
Headline inflation fell to 0.3 percent in April from 0.7 percent in March, while core inflation eased to 8.0 percent from a steady 9.0 percent in previous months. This decline is attributed to favorable base effects and moderated demand conditions.
