KARACHI: The government raised Rs753 billion (realised value) from the auction of market Treasury bills on Wednesday, while yields were mixed, according to the auction result published by the State Bank of Pakistan (SBP).
The one-month T-bill cut-off yield dropped 29 basis points (bps) to 11.1886 per cent. However, the yield on the three-month paper rose 29bps to 11.7899 per cent. The six-month T-bill yield fell 2bps to 11.475 per cent. The 12-month T-bill yield was up 25 basis points to 11.7501 per cent.
The government raised Rs777 billion (face value) from the T-bill auction against the target of Rs750 billion and maturity of Rs506 billion. The auction saw the participation of Rs2.96 trillion.The latest T-bill auction result comes after Pakistan’s consumer price index inflation increased to 7.3 per cent year-on-year (YoY) in March , compared to 7.0 per cent in February.
Inflation is expected to rise to double digits in April due to surging energy prices amid the ongoing conflict in the Middle East.Investors are focusing on the upcoming SBP policy meeting scheduled for April 27 to see what decision the policymakers will make regarding interest rates. The SBP kept its key interest rate unchanged at 10.5 per cent in March and expects inflation to remain above 7.0 per cent in the remaining months of FY26 and into FY27.
