KARACHI: The State Bank of Pakistan (SBP) on Wednesday slashed treasury bill (T-bill) yields by up to 39 basis points, signalling possible room for a policy rate cut in the upcoming monetary policy meeting scheduled for July 30.

Despite maintaining the benchmark interest rate at 11pc since May, the central bank’s latest T-bill auction reflects a shift in market sentiment, with expectations rising for monetary easing amid falling inflation and modest economic growth.

The cut-off yield for 1-month T-bills dropped by 39bps to 10.85pc from 11.24pc. Yields for 3-, 6-, and 12-month papers were also lowered — by 29bps to........

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