The State Bank of Pakistan (SBP) raised Rs392.83 billion in face value terms through its latest auction of Pakistan Investment Bonds (PIBs) with fixed rates, receiving total bids worth Rs1.295 trillion across five tenors. The auction was conducted on November 4, 2026, with settlement scheduled for November 5. The amount raised included competitive bids, non-competitive acceptances and short-selling transactions. The latest mobilisation exceeded the Rs376.74 billion raised in the previous Fixed Rate PIB auction held on October 7, reflecting continued participation in government debt securities.
The auction covered five bond maturities: two-year zero-coupon, three-year, five-year, 10-year and 15-year zero-coupon PIBs. Demand was concentrated in the three-year and five-year instruments, which attracted bids of Rs621.23 billion and Rs437.85 billion, respectively. The 10-year tenor received bids worth Rs121.46 billion, while the two-year instrument attracted Rs110 billion. The 15-year tenor received comparatively limited interest, with bids amounting to Rs5 billion. Overall demand reached Rs1,295.54 billion, providing the government with substantial investor participation across the available maturities, although the distribution of bids varied considerably between tenors.
Of the total amount raised, competitive bids worth approximately Rs366.47 billion were accepted. The three-year PIB accounted for the largest share, with Rs157.005 billion accepted at a cut-off yield of 12.6380% and a weighted average yield of 12.62%. The five-year instrument followed with acceptance of Rs149.65 billion at a cut-off yield of 12.80% and a weighted average yield of 12.76%. The SBP also accepted Rs56.063 billion in the 10-year tenor at a cut-off yield of 12.85%, while the two-year instrument recorded competitive acceptance of Rs3.75 billion at 12.79%. All bids for the 15-year zero-coupon PIB were rejected, continuing the outcome recorded in the previous auction.
The latest auction also showed a decline in cut-off yields across most comparable maturities when measured against the October 7 auction. The two-year yield eased slightly to 12.79% from 12.795%, while the three-year cut-off yield declined to 12.6380% from 12.7460%, representing a reduction of 10.8 basis points. The five-year yield fell by 10 basis points to 12.80% from 12.8998%. In contrast, the 10-year cut-off yield remained unchanged at 12.85%. These movements indicate lower accepted yields for short- and medium-term securities, while the longer 10-year maturity maintained its previous level. The continued rejection of 15-year bids suggests that the auction did not result in an accepted rate for that maturity.
Including non-competitive bids and short-selling acceptances, total face value raised reached Rs392.8268 billion, rounded to Rs392.83 billion. The three-year tenor recorded the highest overall acceptance at Rs165.3302 billion, comprising Rs157.005 billion in competitive bids and Rs8.3252 billion in non-competitive bids. The five-year instrument followed with total acceptance of Rs159.9263 billion, including Rs149.65 billion in competitive bids and Rs10.2763 billion in non-competitive bids. The 10-year tenor accounted for approximately Rs56.063 billion, while the two-year instrument reached Rs11.5073 billion through competitive acceptance of Rs3.75 billion, non-competitive acceptance of Rs0.5073 billion and short selling of Rs7.25 billion. The 15-year instrument received no accepted bids. The latest result takes the amount raised through the two reported Fixed Rate PIB auctions in the current quarter to a higher level than the previous auction alone, with the November auction surpassing October’s Rs376.74 billion mobilisation by approximately Rs16.09 billion.
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