The State Bank of Pakistan has conducted a major government securities auction, successfully raising a total of 648.541 billion rupees in face value terms through the sale of fixed rate Pakistan Investment Bonds. The auction, which was held on June 17, 2026, with a settlement date of June 18, 2026, drew immense interest from institutional investors and financial market participants, reflecting the current liquidity dynamics within the local banking sector. Total face value bids submitted by market participants across the various investment horizons surged to an aggregate of 2,062.42 billion rupees, underscoring strong market appetite for long-term government debt instruments.
The central bank invited tenders for several maturities, including two-year zero-coupon, three-year, five-year, ten-year, and fifteen-year zero-coupon instruments. Investor interest was heavily concentrated in the mid-term maturities, with the five-year investment bonds attracting the highest individual participation of 825.91 billion rupees. The three-year category followed closely, securing 612.55 billion rupees in bids. Smaller volumes were registered for the ten-year instruments at 247.462 billion rupees, the two-year papers at 221 billion rupees, and the fifteen-year papers at 155.5 billion rupees.
Out of the total capital raised, the bulk was generated through competitive bidding, which yielded 583.494 billion rupees for the national exchequer. The five-year bonds remained the primary driver of the competitive category, with the central bank accepting 313 billion rupees at a cut-off yield of 12.19 percent and a weighted average yield of 12.0923 percent. The three-year category saw an acceptance of 153 billion rupees at a cut-off yield of 12.09 percent, translating to a weighted average yield of 12.0593 percent. For longer-term institutional placement, the ten-year papers fetched 114.994 billion rupees with a higher cut-off yield of 12.61 percent and a weighted average yield of 12.5713 percent. Meanwhile, the shortest duration on offer, the two-year instruments, secured 2.5 billion rupees at a flat cut-off and weighted average yield of 12.14 percent. In a notable move, the central bank decided to completely reject all competitive bids submitted for the fifteen-year zero-coupon bonds.
Beyond the core competitive framework, the State Bank of Pakistan integrated non-competitive bids and short-selling allocations to complete the capital generation drive. Non-competitive bids accounted for an additional 17.797 billion rupees across the accepted maturities. This non-competitive participation was led by the five-year bonds with 8.69 billion rupees, followed by the three-year papers with 6.147 billion rupees, the two-year papers with 1.957 billion rupees, and the ten-year papers with 1.003 billion rupees. Furthermore, short selling volume contributed 47.25 billion rupees to the total, with the five-year papers leading at 28 billion rupees, the three-year papers at 11.25 billion rupees, and the ten-year papers at 8 billion rupees. When consolidating the competitive bids, non-competitive components, and short-selling volumes, the final breakdown reveals that the five-year papers accumulated the largest share at 349.69 billion rupees, followed by the three-year papers at 170.397 billion rupees, the ten-year papers at 123.997 billion rupees, and the two-year papers at 4.457 billion rupees, bringing the grand total of the auction to 648.541 billion rupees.
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