The State Bank of Pakistan raised Rs184.96 billion in face value terms through its latest Market Treasury Bills auction, including both competitive and non-competitive bids. The auction attracted total face value bids of Rs1.115 trillion across four available tenors, highlighting substantial investor participation in short-term government securities. The auction was conducted on September 16, 2026, with settlement scheduled for September 17, 2026.
The State Bank of Pakistan invited tenders through Primary Dealers for 1-month, 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills. The 1-month tenor received the highest volume of bids at Rs578.45 billion, followed by Rs335.59 billion for the 3-month tenor. Investors submitted Rs104.98 billion in bids for the 12-month instrument, while the 6-month tenor received Rs96.75 billion. Combined, the four maturities generated Rs1,115.78 billion in face value bids.
Competitive bids accounted for Rs3.41 billion of the total amount accepted by the central bank. No competitive bids were accepted for the 1-month tenor. The 6-month Market Treasury Bill recorded the largest competitive acceptance at Rs1.62 billion, with a cut-off yield of 11.7000%. The 3-month tenor followed with Rs1.28 billion accepted at a cut-off yield of 11.3849%, while Rs0.52 billion was accepted for the 12-month tenor at a cut-off yield of 12.0000%.
The latest auction also recorded changes in cut-off yields compared with the previous Market Treasury Bills auction conducted on September 2, with settlement taking place on September 3, 2026. Yields for the 3-month and 6-month instruments declined, while the 12-month yield edged higher. The 3-month cut-off yield fell by 21.4 basis points to 11.3849% from 11.5992%, while the 6-month yield declined by 19.9 basis points to 11.7000% from 11.8990%. The 12-month yield increased by 1 basis point to 12.0000% from 11.9900%. There was no direct comparison available for the 1-month tenor in the latest auction because all bids were rejected.
Non-competitive bids represented the overwhelming majority of the accepted amount, with Rs181.54 billion allocated through this category. The 3-month tenor accounted for Rs118.11 billion, making it the largest recipient of non-competitive acceptance. The 12-month tenor followed with Rs51.74 billion, while Rs11.69 billion was accepted for the 6-month instrument. No non-competitive bids were accepted for the 1-month Market Treasury Bill.
The accepted non-competitive bids also included a substantial allocation from provincial governments. Provincial Government bids accounted for Rs100 billion of the accepted non-competitive amount, with the entire allocation placed in the 3-month tenor. No provincial government bids were recorded for the 1-month, 6-month or 12-month instruments. The allocation brought the total provincial government participation through non-competitive bids to Rs100 billion.
The combined acceptance through competitive and non-competitive bids resulted in total borrowing of Rs184.96 billion in face value terms. The 3-month tenor led the overall accepted amount with Rs119.38 billion, combining Rs1.28 billion in competitive bids and Rs118.11 billion in non-competitive bids. The 6-month tenor accounted for Rs13.31 billion when both categories were combined.
The auction results indicate that investor participation was concentrated heavily in the shorter maturities, particularly the 1-month and 3-month instruments on the bidding side. However, despite receiving the largest volume of bids at Rs578.45 billion, the 1-month tenor saw all bids rejected. The 3-month instrument ultimately recorded the largest accepted amount, while the government also accepted funds through the 6-month and 12-month maturities. The latest auction provides another view of demand for Pakistan’s short-term government securities, with total bids substantially exceeding the amount ultimately accepted by the State Bank of Pakistan.
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