Data released by the State Bank of Pakistan (SBP) showed that the auction fetched Rs. 997 billion, significantly exceeding the target of Rs. 450 billion.

Cut-off yields rose by up to 20 basis points, reflecting tighter liquidity conditions. While the return on one-month T-Bills edged down by 4.9 basis points, yields on longer tenors increased. The three-month paper saw a rise of 9 basis points, while the six-month T-Bills recorded a sharper increase of 12 basis points, with the cut-off yield reaching 10.44 percent, compared to 9.94 percent in the previous auction held on February 18.

The government mobilised close to Rs. 1 trillion through a Treasury Bills auction as yields showed an upward trend across most maturities.

In terms of volume, the government raised Rs 70 billion through one-month bills and Rs. 82.9 billion via three-month bills. Borrowing through six-month and twelve-month T-Bills stood at Rs. 31 billion and Rs. 135.9 billion, respectively.

A detailed breakdown showed that Rs. 319.8 billion was secured through competitive bidding, while Rs. 677.2 billion came from non-competitive bids, taking the total proceeds of the auction to Rs 997 billion.

The surge in yields and heavy participation indicate strong investor interest amid evolving interest rate expectations.