The State Bank of Pakistan (SBP) has raised Rs492.9 billion through its latest Market Treasury Bills (MTBs) auction, demonstrating strong investor appetite for short-term government securities despite steady yield movements. The auction, held on November 12, 2025, targeted Rs550 billion and settled on November 13, reflecting a healthy response from banks and financial institutions seeking short-term placements in a stable interest rate environment.
According to the SBP data, the total bids received amounted to an impressive Rs1.56 trillion — nearly three times the realized amount — highlighting strong liquidity within the financial sector. Against maturing securities worth Rs602 billion, the central bank accepted Rs492.9 billion in total, with a realized amount of Rs478.3 billion, distributed across all four available tenors.
In tenor-wise breakdowns, the 1-month bills attracted Rs111.7 billion at a cut-off yield of 10.99 percent. The 3-month tenor remained the most in-demand segment, accounting for Rs317.6 billion at 11.04 percent. The 6-month bills contributed Rs14.8 billion at 11.05 percent, while Rs48.8 billion was raised through 12-month bills at 11.35 percent. Of the total accepted bids, Rs73.3 billion were accepted under non-competitive categories.
Compared to the previous auction, yields exhibited marginal variations. The 1-month cut-off yield eased slightly from 11.00 percent, while the 3-month and 6-month tenors remained largely unchanged near 11.05 percent. The 12-month yield held steady at 11.35 percent. This relative stability in yields signals market confidence that the SBP is likely to maintain its current monetary policy stance in the near term, keeping rates anchored amid evolving inflation and liquidity conditions.
The auction results suggest that investors remain inclined toward short-term government debt instruments, balancing their portfolios in light of stable returns and low volatility. Market observers view the continued demand for T-bills as a reflection of cautious optimism in the banking sector and sustained liquidity support from the SBP.
In a separate transaction on the same day, the central bank also raised Rs55 billion through the sale of 10-year Pakistan Investment Bonds – Floating Rate (semi-annual coupon), surpassing the auction target of Rs50 billion. Total offers received amounted to Rs727.6 billion, underscoring substantial demand for longer-duration government paper. Of the total, Rs52.5 billion were accepted under competitive bids and Rs2.5 billion under non-competitive bids.
The cut-off price for the 10-year bonds was set at 95.1388, with bids ranging between 92.7039 and 95.1388. This pricing outcome indicates moderate investor appetite for floating-rate instruments amid expectations of interest rate adjustments in the coming quarters.
The dual auctions underscore SBP’s ongoing efforts to manage the government’s borrowing requirements efficiently while maintaining liquidity and stability in the domestic debt market. These operations also provide a key signal for market participants regarding policy continuity and yield expectations ahead of future monetary policy announcements.
Market analysts believe that by maintaining balanced issuance across short and long-term instruments, the SBP continues to reinforce the structure of Pakistan’s debt market, supporting financial resilience and deepening investor participation in sovereign securities.
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