Govt raises Rs1.6tr as T-bill yields hold steady

The government raised Rs1.65 trillion through the auction of Treasury Bills (T-bills) and Pakistan Investment Bonds (PIBs) on Tuesday, maintaining stable yields despite last week’s 200 basis points (bps) interest rate cut. This was the first auction held following the rate reduction announced in the Dec 16 Monetary Policy. Market analysts had anticipated a decline in T-bill yields after the interest rate cut, but their stability suggests the market had already absorbed the impact. Researchers and financial experts said the reduction in the policy rate to 13 per cent from 15pc had brought the T-bill cut-off yields closer to 12pc, a difference of only 100bps compared to the previous auction when the gap was 300bps.