SBP rejects all bids in Treasury Bill auction

The State Bank of Pakistan (SBP) rejected all bids submitted during Wednesday’s Pakistan Market Treasury Bills (MTBs) auction, in line with the federal government’s directive. 

The auction had attracted total bids amounting to Rs 1.425 trillion for the 3-, 6-, and 12-month tenures, with the majority of interest directed toward the 12-month T-bills. 

According to data, the 12-month MTBs attracted Rs 925 billion, representing 65% of the total bids, followed by Rs 278.6 billion for the 6-month bills and Rs 221.5 billion for the 3-month bills. 

The rejection of all bids is expected to prompt participants to bid at lower rates in the PIB auction, ensuring that the government can secure more favorable borrowing terms. 

Analysts highlighted that the move would not only help the government lower its borrowing costs but also ensure its debt portfolio shifts toward longer-term instruments, thereby improving debt sustainability.