The State Bank of Pakistan raised Rs939.11 billion in face value terms through the latest auction of Market Treasury Bills, drawing strong participation from investors across four maturities. The auction, conducted on August 5, 2026, generated total face value bids of Rs2.29 trillion, including competitive and non-competitive bids, highlighting continued demand for short-term government securities in Pakistan’s financial market.
The State Bank of Pakistan invited tenders through Primary Dealers for the sale of Government of Pakistan Market Treasury Bills with maturities of one month, three months, six months and twelve months. The settlement date for the auction was set for August 6, 2026. The one-month tenor received the largest volume of bids at Rs810.97 billion, followed by the twelve-month tenor with Rs684.32 billion. The three-month tenor attracted Rs433.23 billion, while the six-month tenor received Rs358.65 billion in face value bids.
Across all four maturities, the total face value of bids received amounted to Rs2,287.16 billion. Of this amount, competitive bids worth Rs564.07 billion were accepted by the State Bank of Pakistan. The twelve-month tenor accounted for the largest portion of competitive acceptances, with Rs301.32 billion accepted at a cut-off yield of 11.9490 percent.
The three-month tenor followed with Rs113.08 billion accepted at a cut-off yield of 11.5149 percent. The State Bank of Pakistan accepted another Rs111.05 billion in competitive bids for the six-month tenor at a cut-off yield of 11.7000 percent. The one-month tenor recorded competitive acceptance of Rs38.63 billion at a cut-off yield of 11.3504 percent.
The latest auction also showed easing in cut-off yields across three of the four maturities when compared with the previous Market Treasury Bills auction conducted on July 22, with settlement taking place on July 23, 2026. The one-month yield remained unchanged at 11.3504 percent.
The three-month cut-off yield declined by 0.05 basis points to 11.5149 percent from 11.5154 percent in the previous auction. The six-month yield recorded a more notable decline of 9.51 basis points, falling to 11.7000 percent from 11.7951 percent. Meanwhile, the twelve-month cut-off yield declined by 4.48 basis points to 11.9490 percent from 11.9938 percent.
Weighted average yields on accepted competitive bids were lower than the respective cut-off levels. The one-month tenor recorded a weighted average yield of 11.25 percent, compared with its cut-off yield of 11.35 percent. The three-month tenor posted a weighted average yield of 11.44 percent against a cut-off yield of 11.51 percent, while the six-month tenor also recorded a weighted average yield of 11.44 percent against a cut-off of 11.70 percent. The twelve-month tenor posted the highest weighted average yield at 11.87 percent, compared with its cut-off yield of 11.95 percent.
In addition to competitive bids, the State Bank of Pakistan accepted Rs375.04 billion through non-competitive bids. The six-month maturity accounted for the largest share of these acceptances at Rs214.24 billion. The one-month tenor followed with Rs99.79 billion, while Rs40.73 billion was accepted for the three-month maturity and Rs20.27 billion for the twelve-month maturity.
Provincial governments accounted for Rs270 billion of the accepted non-competitive bids. The six-month tenor represented the largest portion of provincial government participation, with Rs200 billion accepted. Another Rs70 billion was accepted under the one-month maturity. No provincial government bids were recorded under the three-month or twelve-month tenors.
The prices associated with the accepted non-competitive bids stood at 99.1444 for the one-month tenor, 97.4347 for the three-month tenor, 94.6045 for the six-month tenor and 89.417 for the twelve-month maturity.
Taking competitive and non-competitive acceptances together, the State Bank of Pakistan raised a total of Rs939.11 billion in face value terms through the auction. The six-month tenor accounted for the largest overall acceptance at Rs325.29 billion, followed by the twelve-month tenor at Rs321.59 billion.
The one-month maturity recorded total acceptance of Rs138.42 billion, while the three-month tenor accounted for Rs153.81 billion. The combined figures indicate that longer short-term maturities attracted substantial acceptance, with the six-month and twelve-month instruments together accounting for the majority of the amount raised.
The auction provides another indication of demand for Government of Pakistan securities as financial institutions and other eligible participants continue to place funds in government debt instruments. The movement in yields across the four maturities also reflects changing pricing conditions in the short-term government securities market.
With Rs2.29 trillion in total face value bids received against Rs939.11 billion raised, the auction recorded significant demand relative to the amount accepted. The decline in yields for the three-month, six-month and twelve-month tenors compared with the previous auction further marks a shift in pricing across most maturities, while the one-month rate remained stable.
The latest Market Treasury Bills auction therefore resulted in substantial government securities issuance while maintaining a relatively firm level of investor participation across the maturity spectrum. The final acceptance of Rs939.11 billion comprised Rs564.07 billion in competitive bids and Rs375.04 billion in non-competitive bids, with the six-month tenor emerging as the largest contributor to the total amount raised.
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