Govt. hoists Rs618 billion, gashes yields on T-bills

On Wednesday, The government again slashed the cut-off yields on treasury bills (T-bills) while it raised Rs617.8 billion in an auction.

The cut-off yield on the benchmark six-month T-bills was slashed by14 basis points to raise Rs299.4bn. In the last auction held on April 21 the rate was slashed by 11bps.

The bidding trend showed presence of huge liquidity but little opportunity for banks to invest the money. Earlier report of the State Bank showed that deposits of banks have been increasing mainly on account of less consumption due to several reasons related with coronavirus.