Pakistan, Jan. 8 -- The government raised more than Rs1 trillion through fresh auctions of treasury bills and long-term Pakistan Investment Bonds (PIBs) on Wednesday, amid strong liquidity in the banking sector and expectations of further monetary easing.

According to data released by the State Bank of Pakistan, the government borrowed Rs979.3 billion through T-bills and another Rs108bn via PIBs, bringing the total to Rs1.087 trillion. Market analysts described the result as indicative of robust investor appetite for government securities.

Cut-off yields on T-bills were reduced by up to 34 basis points across various tenors. Dealers interpreted the decline as a signal that the central bank may consider a further 50bps cut in the policy...