64pc foreign investment withdrawn from T-bills

About 64 per cent of foreign investments in treasury bills (T-bills) have been withdrawn and returned to their destinations, disappointing the government striving to attract dollar inflows. Market experts offer several reasons for this trend of outflows from domestic bonds but mostly believe that frequently declining returns on T-bills are due to falling policy interest rates and political uncertainty. The latest data from the State Bank showed that slightly over the first five months of FY25, the cumulative inflows in T-bills were $866.6 million, while the outflows were $550.6m. Financial experts said the outflows increased in the last couple of months mostly because of a fast decline in the interest rate, which ultimately reduced returns on T-bills.