Govt raises Rs640bn, slashes T-bill yields by up to 49bps

Exceeding the Rs450 billion treasury bills auction target, the government raised Rs640 billion on Wednesday but reduced the cut-off yields for different tenors by up to 49 basis points. However, it received bids amounting to over Rs1.8 trillion, reflecting the investors’ willingness to park their maximum liquidity in risk-free government papers, mainly when the investment environment is not conducive. In its half-yearly report released on Tuesday, the State Bank of Pakistan (SBP) blamed political uncertainty and inconsistent policies for the current poor economic situation. The government has been borrowing vigorously from banks despite higher revenue collection so far this fiscal year.