Pakistan’s 1-year Treasury Bill (T-Bill) rate has plummeted to 11.34%, marking its lowest level in three years. According to Topline Securities, this significant decline comes as inflation eases, with rates halving from their peak of 24.73% over the past 18 months.
📉 T-Bill Auction Highlights
On Wednesday, the State Bank of Pakistan (SBP) conducted a T-Bill auction, leading to notable drops in cut-off yields for all tenors:
✅ 3-Month T-Bill: 📉 Down 20 basis points (bps) to 11.59%
✅ 6-Month T-Bill: 📉 Down 39 bps to 11.40%
✅ 12-Month T-Bill: 📉 Down 45 bps to 11.34%
📢 Strong Investor Demand
Despite lower yields, investor demand remained robust, with bids totaling Rs. 1,401 billion, significantly exceeding the Rs. 350 billion target. However, the SBP only accepted Rs. 326 billion, highlighting selective participation in the market.
📈 What This Means for Investors & The Economy
🔹 Lower borrowing costs for the government could help ease fiscal pressures.
🔹 Declining inflation trends indicate potential stability in the economy.
🔹 Fixed-income investors may seek alternative avenues for higher returns.
As Pakistan navigates monetary policy adjustments, these developments will shape interest rates, investment strategies, and economic growth in the coming months.
