The government has raised more than Rs1.03 trillion through auctions of treasury bills, Pakistan Investment Bonds (PIBs) and the Government Ijara Sukuk (GIS), with all three instruments attracting strong investor interest, according to data released by the State Bank of Pakistan (SBP).
In the T-bill auction, the SBP had set a target of Rs650 billion but received bids worth Rs1.803 trillion. It eventually accepted Rs749 billion across four tenors.Â
The one-month paper drew the highest bids at Rs648 billion against the target of Rs100 billion, though only Rs61 billion was accepted at a cut-off yield of 10.89%, slightly lower than the previous auction. The three-month tenor attracted Rs211 billion in bids against the Rs150 billion target, with Rs251 billion accepted at an 11% cut-off yield.Â
For six-month bills, the central bank received bids of Rs177 billion versus the Rs200 billion target but accepted Rs69 billion, also at 11%. The 12-month tenor drew Rs767 billion in bids, of which Rs368 billion was accepted at a cut-off yield of 11.27%.
Yields across all T-bill tenors saw marginal declines compared to the previous auction and the secondary market, signalling continued confidence in short-term government debt.
In the PIB auction, the government raised Rs28 billion through the 10-year Pakistan Floating Rate Semi-Annual (PFL-SA) bond. The instrument received Rs524 billion in bids against the Rs50 billion target.Â
The cut-off price was set at 95.4, translating into a cut-off rate of 11.70% with a spread of 0.80% over the benchmark.
Separately, the SBP conducted an outright purchase of the Government Ijara Sukuk (GIS) VRR-22 on a deferred payment (Bai Muajjal) basis. Against an offered face value of Rs176.43 billion, the SBP accepted Rs175.16 billion at a Bai Muajjal cut-off price of 144.97. The deferred payment obligation amounted to Rs253.93 billion.
The Sukuk continued to draw strong demand from Sharia-compliant investors, reinforcing the appetite for Islamic government securities in the domestic market.
