The State Bank of Pakistan raised seven hundred and sixty-eight point four billion rupees in total face value terms through its latest auction of Market Treasury Bills, encompassing both competitive and non-competitive bids. Financial institutions and institutional investors submitted substantial participation, with total face value bids topping two point zero nine trillion rupees across four maturity tenors. The primary market auction invited tenders for one-month, three-month, six-month, and twelve-month paper, with the official settlement scheduled for July twenty-third.
Market appetite remained heavily tilted toward short-dated paper in terms of total bid volume, with the one-month paper attracting the largest share of demand at nine hundred and ninety point four nine billion rupees. Bids for the three-month tenor totaled five hundred and forty point one billion rupees, while the twelve-month and six-month tenors received bids amounting to three hundred and thirty-seven point nine four billion rupees and two hundred and twenty-nine point two six billion rupees, respectively. Despite high overall submission volumes, central bank acceptances remained selective in line with sovereign cash flow requirements and interest rate management strategies.
Out of the total participation, competitive acceptances stood at three hundred and seventy-six point zero eight billion rupees. The twelve-month tenor led competitive allocations with one hundred and sixty-two point four three billion rupees accepted at a cut-off yield of eleven point nine nine percent. Competitive bids accepted in the three-month paper reached one hundred and three point nine billion rupees at a cut-off yield of eleven point fifty-two percent, while six-month acceptances reached ninety-eight point two six billion rupees at a cut-off yield of eleven point eighty percent. The one-month paper recorded competitive acceptances of fifteen billion rupees at a cut-off yield of eleven point thirty-five percent.
Cut-off yields showed an upward trajectory across medium-to-longer tenors compared to the previous Treasury Bill auction conducted earlier in the month. The yield on the twelve-month paper expanded by fifty point five eight basis points, while the six-month and three-month yields increased by thirty-five point seven six basis points and eleven point seven six basis points, respectively. Conversely, short-term yields eased slightly, with the one-month paper cut-off yield declining by four point six four basis points. The yield curve behavior reflects shifting investor expectations regarding money market liquidity conditions and future policy rate dynamics.
In addition to competitive allocations, the central bank accepted three hundred and ninety-two point three two billion rupees through non-competitive bids. The three-month tenor dominated non-competitive acceptances at two hundred and thirty-three point four four billion rupees, followed by one hundred and twelve point four two billion rupees in the six-month tenor. Within the non-competitive category, provincial government allocations accounted for three hundred billion rupees, concentrated entirely in the three-month and six-month maturities. Cumulative acceptances across all competitive and non-competitive channels positioned the three-month paper as the highest raised category at three hundred and thirty-three point eight four billion rupees.
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