OUR STAFF REPORTER LAHORE - SBP is scheduled to conduct T-bill auction on Wednesday (today) with target borrowing of Rs215 billion against maturities of similar amount. Gravity of seasonal tight liquidity has relaxed a little, however, outflows due to Eidul Azha are making the liquidity situation stifled in short-term. Experts said that this has also compelled market participants to opt for Sell/Buy swaps in currency markets to generate liquidity, as central bank has also continued monetary injections through open market operations (OMO); injecting Rs216 billion in last OMO at 11.47 percent. Impression gauged from previous T-bill auction where the central bank borrowed Rs104 billion against the target of Rs250 billion also indicates unwillingness of central bank to borrow at higher rates. While experts expect participation to remain high in 12 and 6 months tenor, they estimate 12 to 14bps and 13 to 15bps cut in 12M and 6M papers respectively. A 10-year PIB was seen trading below the discount rate during previous session whereas 2-year PIB yield came down to 11.99 percent. Given that monetary easing is likely to continue, coupled with looming supply of PIBs, it is expected the benchmark 10-year PIB yield to clock in between 12.05 percent - 12.09 percent. Inflation for Oct11 on the back of higher base effect from previous year and rebasing along with change in methodology is expected to clock in at 10.3 percent. With annual CPI inflation for FY12 estimated to average in between 11.0 percent - 11.3 percent, further monetary easing is expected.