The federal government raised Rs478 billion through the auction of market treasury bills (MTBs) on Wednesday, according to results released by the State Bank of Pakistan (SBP).
The auction carried a target of Rs550 billion against maturities of Rs602 billion. The government accepted Rs493 billion (face value), while total participation reached Rs1.62 trillion, reflecting strong liquidity in the banking system.
Short-term yields showed minor movement. The one-month T-bill yield fell by 1 basis point to 10.9884%, while the three-month yield also declined by 1 basis point to 11.0426%. The six-month yield remained unchanged at 11.0499%, and the 12-month paper stayed flat at 11.35%.
The auction comes as inflation rose to 6.2% in October, up from 6.6% a month earlier, driven largely by food price increases linked to flooding and temporary border disruptions affecting supply chains.
The SBP last month kept the policy rate unchanged at 11% for a fourth consecutive decision, reiterating that inflation is expected to stay above the 5%–7% target band for several months before easing in the next fiscal year.
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