KARACHI: The cut-off yields for treasury bills reflected a mixed reaction to the increased inflation of about 7.3 per cent for March.

The government slashed the returns on one-month papers by 29 basis points to 11.18pc and raised Rs124 billion. It, however, picked the highest amount of Rs455bn for three months after increasing the yield by 29bps to 11.50pc for the tenor.

The return on the six-month T-bill tenor was reduced by 2bps 11.49pc to raise Rs51bn. The yield on 12-month papers was increased by 25bps to 11.50pc and an amount of Rs29bn was generated.

The government raised Rs659bn through auction, while it generated Rs94bn through non-competitive bids, making the total of Rs753bn.

Experts in the financial sector ruled out any decline in the interest rate in the next SBP’s Monetary Policy Committee meeting scheduled for April 27 since the inflation has gone up to 7.3pc and could further increase if the Gulf war continues for another couple of weeks.

Published in Dawn, April 2nd, 2026