The federal government raised Rs2.068 trillion through the latest Market Treasury Bills (MTBs) auction on Tuesday, falling short of its Rs2.4 trillion target, while cut-off yields declined across all maturities, reflecting easing expectations for interest rates.

According to auction results, the government accepted bids worth Rs2,067.9 billion, with the largest amount—Rs1,087.6 billion—raised through 12-month Treasury Bills. Another Rs485.3 billion was raised through six-month papers, Rs396.5 billion through three-month bills, and Rs98.4 billion via one-month securities.

Cut-off yields fell by 31.0 to 40.3 basis points across all tenors compared with the previous auction held on June 23.

The one-month cut-off yield declined by 40.3 basis points to 11.3968 percent, while the three-month yield fell 35.2 basis points to 11.3978 percent.

Similarly, the six-month cut-off yield dropped 31.0 basis points to 11.4375 percent, and the 12-month yield decreased 35.0 basis points to 11.4880 percent.

Weighted average yields also eased across the board, with the one-month tenor settling at 11.3917 percent, three-month at 11.3716 percent, six-month at 11.3904 percent, and 12-month at 11.3731 percent.

The auction received a total of Rs2.07 trillion in accepted bids, comprising Rs1.063 trillion in competitive bids and Rs1.004 trillion in non-competitive bids.

The decline in yields follows the State Bank of Pakistan’s recent monetary easing and signals improving market expectations regarding inflation and future interest rate movements. The strong demand for 12-month securities, which accounted for more than half of the total amount raised, suggests investors are willing to lock in current yields for longer maturities.