KARACHI: Foreign investment in domestic bonds has recorded net outflows during the first two months of the current fiscal year, despite moderate inflows in the same period.

The State Bank’s latest data showed that outflows from treasury bills amounted to $73 million against inflows of $44m — 64pc higher than the receipts. Analysts said the trend, if it persists, could disappoint policymakers who closely monitor foreign currency movements, particularly the US dollar.

They noted that a sharp cut in interest rates had eroded foreign appetite for government papers. The policy rate has been slashed by........

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