Govt raises Rs555 billion in T-bills auction as yields increase

The government raised Rs555 billion in realised value through the auction of Market Treasury Bills (T-bills) on Wednesday, with cut-off yields increasing across all maturities, according to auction results released by the State Bank of Pakistan.

The one-month T-bill yield increased by 35 basis points to 10.4955 percent. The three-month paper’s cut-off yield rose by 21 basis points to 10.51 percent, while the six-month yield advanced by 30 basis points to 10.7401 percent.

The yield on the 12-month T-bill recorded the largest increase, climbing 39 basis points to 10.9928 percent.

The government raised Rs581.6 billion on a face-value basis against a target of Rs550 billion. The auction attracted total bids worth Rs915 billion, while maturities during the period stood at Rs474 billion.

Market analysts said the rise in yields reflects investor positioning ahead of the State Bank of Pakistan’s upcoming monetary policy decision scheduled next week.

They noted that the central bank’s stance will depend partly on inflation trends and global commodity price movements amid ongoing tensions in the Middle East.