The government raised Rs853 billion through the auction of Market Treasury Bills (T-bills) on Wednesday, slightly missing the Rs900 billion target, according to the auction result released by the State Bank of Pakistan (SBP).
The auction saw substantial participation, with bids totaling Rs2,992 billion. Despite not meeting the target, the government successfully raised Rs853 billion against a maturing amount of Rs980 billion, as reported by Topline Securities.
The auction results also revealed a decline in yields across all tenors. The one-month T-bill yield dropped by 1 basis point (bps) to 11.09%, while the three-month yield fell by 10bps to 11.05%. The six-month T-bill yield decreased by 22bps to 10.97%, and the 12-month paper yield dropped by 25bps to 10.95%.
Earlier this month, the SBP reduced its benchmark interest rate by 100bps to 11%, continuing a series of rate cuts that began after the rate peaked at 22% in 2024.Â
Analysts and market participants are closely monitoring the upcoming SBP meeting on June 16 for further decisions on interest rates.
