Govt raises Rs1.2tr at auctions for bonds, T-bills

Amid the high possibility of no further cuts in the interest rate, investors made a total of Rs2.207 trillion bids, mostly for the long-term tenors, with no change in the cut-off yields at the treasury bills (T-bills) and Pakistan Investment Bonds (PIBs) auctions on Wednesday. Announcing the results of the auctions, the State Bank of Pakistan (SBP) reported that the government raised a total of Rs1.2tr, which reflected a change in investment patterns. With the steep fall of the interest rate from 22 per cent to 12pc in the first seven months of FY25, the banks preferred to park their liquidity in long-term tenors while the government was also willing to raise cheaper money for an extended period.