The State Bank of Pakistan (SBP) raised Rs1.62 trillion in its latest government securities auctions, with the majority of the funds, Rs1.413 trillion, coming from Market Treasury Bills (MTBs) and Rs208.42 billion from 10-year Pakistan Investment Bonds Floating Rate (PFL).
The MTBs auction attracted strong investor demand across all four tenors. The SBP accepted Rs214.28 billion for one-month papers at a cut-off yield of 11.24%, Rs474.70 billion for three-month papers at 10.9977%, Rs180.52 billion for six-month bills at 10.8976%, and Rs543.88 billion for 12-month bills at 10.80%.Â
The 12-month tenor saw the highest allocation, reflecting growing interest in slightly longer-term instruments as yields trended downward.
Non-competitive bids in the MTB auction totaled Rs379.78 billion, with Rs310.63 billion directed toward the three-month tenor, highlighting the market’s preference for shorter durations.Â
In the 10-year PFL auction, competitive bids worth Rs202 billion were accepted, along with non-competitive bids of Rs6.42 billion, setting the cut-off price at Rs94.5739.
While the total amount raised fell slightly short of the Rs1.7 trillion target, analysts noted the significant interest in MTBs and the flattening yield curve, indicating a growing preference for longer-tenor government securities. Market participants are awaiting further auction details to meet the government’s short-term borrowing target.
