Govt again raises T-bill rates

KARACHI: The cut-off yields on treasury bills have again been raised by the government for almost all tenors and the highest rate has reached 11 per cent — almost 50 basis points more than the State Bank of Pakistan’s policy rate of 10.5pc.

The latest auction witnessed a 39bps increase for a 12-month paper on Wednesday. The government raised Rs155 billion at 11pc.

The yields on T-bills have been rising for the last three consecutive auctions, reflecting the policymakers’ approach towards the long-term view for inflation.

However, the Iran crisis has created a real fear about rising inflation. The financial market was full of analytical views about inflation, with most businessmen certain that tensions in the Gulf would trigger a price spiral.

Returns rise to 11pc — 50bps more than SBP policy rate

Returns rise to 11pc — 50bps more than SBP policy rate

The closure of the Strait of Hormuz suspended the supply of crude from most countries of the Middle East, leading to a jump in oil prices to $90 per barrel. Since Pakistan depends largely on imported oil, crude prices........

© Dawn Business