The State Bank of Pakistan (SBP) raised Rs680.07 billion in face value terms through the latest auction of Market Treasury Bills (MTBs), including both competitive and non-competitive bids. The auction was conducted on September 2, 2026, following tenders invited by the central bank through Primary Dealers for 1-month, 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills. The settlement date for the accepted securities was set for September 3, 2026. Against the total amount raised, the State Bank of Pakistan received aggregate face value bids of Rs2,773.85 billion across the four available tenors, indicating substantial participation in the government securities market.
The highest volume of bids was recorded for the 1-month tenor, which attracted Rs1,171.27 billion in face value bids. This was followed by the 12-month tenor with Rs711.05 billion, while the 3-month and 6-month tenors received Rs459.31 billion and Rs432.22 billion, respectively. Despite receiving the largest volume of bids, the 1-month tenor accounted for a comparatively smaller portion of the final accepted amount. The distribution of bids across different maturities reflected demand for short and medium-term government securities, with the 3-month tenor ultimately recording the largest overall acceptance in the auction.
Of the total bids received, the State Bank accepted competitive bids worth Rs284.24 billion across the four tenors. The 3-month MTB led competitive acceptances with Rs138.52 billion at a cut-off yield of 11.5992%. The 6-month tenor followed with Rs105.22 billion accepted at a cut-off yield of 11.8990%. Competitive bids for the 12-month tenor amounted to Rs21.04 billion at a cut-off yield of 11.9900%, while the 1-month tenor saw Rs19.46 billion accepted at a cut-off yield of 11.3875%. The weighted average yields for the accepted competitive bids stood at 11.38% for 1-month, 11.56% for 3-month, 11.82% for 6-month and 11.95% for 12-month securities.
Cut-off yields showed mixed movement compared with the previous MTB auction held on August 19, 2026, which had a settlement date of August 20. The yield on 1-month MTBs declined by 8.2 basis points to 11.3875% from 11.4698% in the previous auction. The 3-month cut-off yield also decreased by 4.6 basis points, moving to 11.5992% from 11.6450%. In contrast, the 6-month yield increased by 10.1 basis points to 11.8990% from 11.7980%. The 12-month cut-off yield remained unchanged at 11.9900%, maintaining the same level recorded in the previous auction. The differing yield movements across maturities indicate varying demand conditions across the government securities curve during the latest auction.
In addition to competitive bids, the State Bank accepted Rs395.83 billion through non-competitive bids. The 3-month tenor again accounted for the largest share of this category, with Rs249.31 billion accepted. The 1-month tenor followed with Rs104.12 billion, while Rs26.60 billion was accepted for the 12-month tenor and Rs15.80 billion for the 6-month tenor. The prices associated with the accepted non-competitive bids stood at 99.1343 for 1-month MTBs, 97.4091 for 3-month MTBs, 94.4344 for 6-month MTBs and 89.3534 for 12-month MTBs.
Provincial governments accounted for Rs275.00 billion of the accepted non-competitive bids. This amount comprised Rs200.00 billion in the 3-month tenor and Rs75.00 billion in the 1-month tenor. No provincial government bids were recorded under the 6-month or 12-month categories. The provincial participation formed a significant portion of the overall non-competitive acceptance and contributed to the total amount raised through the auction. The inclusion of these bids brought the total non-competitive acceptance to Rs395.83 billion.
Overall, the combined acceptance of competitive and non-competitive bids brought the total amount raised through the Market Treasury Bills auction to Rs680.07 billion in face value terms. The 3-month tenor recorded the highest total acceptance at Rs387.82 billion, comprising Rs138.52 billion in competitive bids and Rs249.31 billion in non-competitive bids. The 6-month tenor accounted for Rs121.02 billion, while the 1-month and 12-month tenors recorded total acceptances of Rs123.58 billion and Rs47.64 billion, respectively. The latest auction therefore resulted in a substantial government securities raising operation, with the 3-month maturity representing the largest share of the total amount accepted.
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