KARACHI: The government raised Rs1.92 trillion from the auction of market Treasury bills on Wednesday, with yields falling across all tenors.
The one-month T-bill cut-off yield fell 40 basis points to 11.3968 per cent. The yield on the three-month paper decreased 35 basis points (bps) to 11.3978 per cent. The six-month T-bill yield was down 31bps to 11.4375 per cent. The 12-month T-bill yield declined 35bps to 11.488 per cent.
The raised amount was lower than the pre-auction target of Rs2.4 trillion. The participation in the auction was Rs4.28 trillion.Pakistan’s consumer price index inflation rose 11.1 per cent year-on-year (YoY) in June, a decrease from 11.7 per cent in May, and fell within the government’s projected range of 11 per cent to 12 per cent.
According to analysts, the latest auction result reflects growing market expectations that the monetary tightening cycle has ended and that the next policy move could be towards easing.The State Bank of Pakistan kept its benchmark interest rate unchanged at 11.5 per cent in June, weighing inflation pressures from the Middle East conflict against slowing economic activity.
