The State Bank of Pakistan (SBP) successfully concluded two debt auctions on Wednesday, raising a total of Rs636 billion through the sale of Market Treasury Bills (MTBs) and Pakistan Investment Bonds – Floating Rate (PFL). The results showed stability in yields across most tenors, reflecting a stable market outlook.
The government mobilized Rs526.97 billion (face value) through the sale of 1-month, 3-month, 6-month, and 12-month treasury bills, including non-competitive bids. The breakdown of the T-bill sales was as follows:
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1-Month T-Bill: Rs88.8 billion raised at a cut-off yield of 10.90%, slightly higher than the weighted average of 10.87%.
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3-Month T-Bill: Rs66.2 billion mobilized, with the cut-off yield settling at 10.85%.
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6-Month T-Bill: Rs76.5 billion accepted at a yield of 10.85%.
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12-Month T-Bill: The largest participation was observed here, with Rs295.4 billion accepted at a slightly higher cut-off yield of 10.999%.
The overall yields remained anchored in the 10.8–11% range, signaling market expectations of a stable near-term interest rate outlook. This also indicates investor confidence in Pakistan’s fiscal management amid ongoing economic recovery efforts.
In a separate auction, the SBP raised Rs109.3 billion (face value) through the issuance of 10-year floating rate PIBs, with settlement scheduled for August 21, 2025. The competitive bids received amounted to Rs100 billion, with an additional Rs9.25 billion from non-competitive participation. The cut-off price for the PIBs was set at 95.5244, within the price range of 93.48–95.52, indicating cautious investor positioning at current floating benchmarks.
The successful completion of these auctions underscores a strong demand for government debt instruments and reflects investor confidence in the stability of Pakistan’s financial system. With the country aiming to meet its funding requirements and manage fiscal policies effectively, these developments represent positive signals for Pakistan’s debt management strategy.
