The State Bank of Pakistan (SBP) raised Rs725.7 billion through its latest auction of Market Treasury Bills (MTBs), exceeding the target of Rs700bn, reflecting strong market participation and liquidity conditions.
The auction was conducted on January 21, 2026, with settlement scheduled for January 22. Total bids received amounted to Rs1.85 trillion, significantly higher than both the auction target and the accepted amount, indicating robust investor appetite for government securities.
According to the auction results, the SBP accepted bids totaling Rs725.7bn across all four tenors. The realized amount stood at Rs1.735 trillion. Of the total accepted amount, competitive bids accounted for Rs293.2bn, while non-competitive bids stood at Rs432.497bn.
Tenor-wise data showed that Rs32.3 million was raised through one-month MTBs at a weighted average yield of 9.8996%. The three-month tenor attracted the largest share, with Rs374.3bn mobilized at a weighted average yield of 9.8776%.
The six-month MTBs contributed Rs44.1bn at a weighted average yield of 9.928%, while the twelve-month bills raised Rs240.1bn at a weighted average yield of 9.8975%. The distribution highlights a preference for shorter- to medium-term maturities, particularly the three-month tenor.
In a separate development, the SBP also conducted an auction of 10-year Pakistan Investment Bonds (PIBs) with a floating rate and semi-annual coupon on the same day. The PIB auction had a face value target of Rs428.1bn.
Bids for the 10-year floating-rate PIBs were received within a price range of 97.6567 to 95.2717. However, the central bank rejected all bids, resulting in no acceptance under this auction.
The outcome of the MTB auction underscores continued reliance on short-term domestic borrowing to meet financing needs, while the rejection of PIB bids suggests cautious sentiment regarding longer-term instruments under prevailing market conditions.
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