Pakistan’s government securities auctions witnessed strong investor participation on Wednesday, as the State Bank of Pakistan (SBP) successfully raised a total of Rs1.09 trillion through treasury bills (T-bills) and Pakistan Investment Bonds (PIB) Floaters. Cut-off yields declined across all T-bill tenors, reflecting positive market sentiment and growing investor confidence.
In the treasury bills auction, the government accepted Rs979 billion, surpassing the cumulative target of Rs850 billion, with total bids amounting to Rs2.56 trillion. The one-month T-bills saw an acceptance of Rs87 billion at a cut-off yield of 10.20%, marking a 29-basis-point decline from the previous auction.
For the three-month tenor, Rs80 billion was accepted at a cut-off yield of 10.15%, down 34 basis points, while the six-month T-bills recorded Rs52 billion accepted, with a cut-off yield easing 32 basis points to 10.16%. The majority of the auction focused on 12-month papers, where the government raised Rs761 billion at a cut-off yield of 10.16%, representing a 33-basis-point drop from the previous auction.
The 10-year PIB Floating Rate (Semi-Annual) auction also performed strongly, raising Rs108 billion, well above the target of Rs50 billion, with total bids reaching Rs758 billion. The cut-off price was set at 97.20, translating to a cut-off rate of 10.93%. The spread over the benchmark narrowed to 47 basis points, compared to 63 basis points in the previous auction.
The strong participation and decline in yields indicate improved investor confidence in Pakistan’s debt market amid ongoing macroeconomic stabilization efforts. Analysts noted that the results signal positive sentiment toward government securities and reflect growing appetite for long-term instruments in the domestic market.
The SBP’s strategic management of auctions and interest rates continues to support efficient liquidity management, while encouraging broader market participation. The success of the latest auctions also underscores Pakistan’s efforts to maintain stability in financial markets and attract institutional and retail investors.
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