- July 9, 2026
- Posted by: Tresmark
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The government raised Rs1.92 trillion through the auction of market Treasury bills (T-bills) on Wednesday, with cut-off yields declining across all maturities amid expectations of future monetary easing.
The one-month T-bill cut-off yield fell by 40 basis points (bps) to 11.3968%. The three-month yield declined 35bps to 11.3978%, while the six-month paper dropped 31bps to 11.4375%. The 12-month T-bill yield also eased 35bps to 11.488%.
The amount raised was below the government's pre-auction target of Rs2.4 trillion, despite total bids amounting to Rs4.28 trillion.
The auction comes after Pakistan's consumer price inflation slowed to 11.1% year-on-year in June, down from 11.7% in May, remaining within the government's projected range of 11% to 12%.
According to market analysts, the decline in T-bill yields reflects growing expectations that the State Bank of Pakistan's monetary tightening cycle has ended, with investors increasingly pricing in the possibility of policy rate cuts in the coming months.
The State Bank of Pakistan kept its benchmark policy rate unchanged at 11.5% in June, balancing inflationary risks stemming from geopolitical tensions in the Middle East against moderating domestic economic activity.
