Govt raises Rs1.2tr with cut in yields

The government has further slashed the returns on treasury bills (T-bills) by up to 66 basis points in the auction held on Wednesday. However, the banking liquidity was more visible as bids for T-bills and Pakistan Investment Bonds (PIBs) reached Rs3.75 trillion. The bids for T-bills and PIBs were Rs2.493tr and 1.264tr, respectively. According to the State Bank of Pakistan (SBP), the government raised Rs616bn through T-bills and Rs613.4bn through PIBs, making the total Rs1.229tr. Financial market experts said that the cut in T-bill rates was expected due to a downward trajectory in the SBP policy rate with a sharp deceleration in inflation, while the Karachi Inter-Bank Offered Rate was also below 13pc.