The State Bank of Pakistan (SBP) raised Rs517.90 billion in face value terms through the auction of Market Treasury Bills (MTBs) conducted on August 19, 2026. The amount includes both competitive and non-competitive bids and was raised against total face value bids of Rs2.19 trillion received across four different tenors.
The auction covered 1-month, 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills. The SBP invited tenders through Primary Dealers on August 19, with the settlement date scheduled for August 20, 2026. The auction attracted substantial demand, with total face value bids reaching Rs2,192.24 billion across the four maturities.
The highest volume of bids was recorded for the 1-month tenor, which received Rs987.31 billion in face value bids. This was followed by Rs505.27 billion for the 12-month tenor, Rs487.76 billion for the 3-month tenor and Rs211.89 billion for the 6-month tenor.
Of the total bids received, competitive bids worth Rs237.60 billion were accepted across the four tenors. The 3-month MTB received the largest competitive acceptance at Rs118.71 billion, with a cut-off yield of 11.6450%. The 12-month tenor followed with Rs52.59 billion accepted at a cut-off yield of 11.9900%. The SBP accepted Rs38.01 billion through competitive bids for the 1-month tenor at a cut-off yield of 11.4698%, while Rs28.29 billion was accepted for the 6-month tenor at a cut-off yield of 11.7980%.
Cut-off yields increased across all four tenors compared with the previous MTB auction conducted on August 5, 2026, with settlement completed on August 6. The yield on 1-month bills increased by 11.9 basis points to 11.4698% from 11.3504%. The 3-month yield rose by 13 basis points to 11.6450% from 11.5149%.
Similarly, the cut-off yield for the 6-month tenor increased by 9.8 basis points to 11.7980%, compared with 11.7000% in the previous auction. The 12-month yield recorded the smallest increase, rising by 4.1 basis points to 11.9900% from 11.9490%. The weighted average yields on the accepted competitive bids stood at 11.44% for the 1-month tenor, 11.54% for the 3-month tenor, 11.73% for the 6-month tenor and 11.96% for the 12-month tenor.
In addition to the competitive bids, the SBP accepted Rs280.30 billion through non-competitive bids. The 3-month tenor accounted for the overwhelming majority of these accepted bids, with Rs230.83 billion. The 6-month tenor received Rs17.98 billion, while Rs17.20 billion was accepted for the 12-month tenor and Rs14.29 billion for the 1-month tenor. Provincial governments accounted for Rs200 billion of the accepted non-competitive bids. The entire amount was placed in the 3-month tenor, while no provincial government bids were recorded under the 1-month, 6-month or 12-month maturities.
The prices for accepted non-competitive bids stood at 99.13 for the 1-month tenor, 97.4139 for the 3-month tenor, 94.4745 for the 6-month tenor and 89.3466 for the 12-month tenor. The combined acceptance of competitive and non-competitive bids brought the total amount raised through the auction to Rs517.90 billion in face value terms. The 3-month tenor recorded the largest overall acceptance at Rs349.54 billion.
The 12-month tenor accounted for Rs69.79 billion of total acceptance, while the 1-month tenor stood at Rs52.30 billion and the 6-month tenor at Rs46.27 billion. The latest auction reflects continued government borrowing through short-term securities, with the 3-month maturity attracting the largest overall acceptance. At the same time, the increase in cut-off yields across all four tenors compared with the previous auction indicates a higher yield requirement across the MTB maturity curve during the latest auction.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.