State Bank of Pakistan (SBP) has successfully raised a total of Rs777.69 billion through its latest Market Treasury Bills (MTBs) and the 10-year Pakistan Investment Bond – Floating Rate (PIB-FRB) auction, reflecting continued investor confidence and strong demand for government securities. Of the total, Rs749.48 billion was mobilized via MTBs, surpassing the target of Rs650 billion, while Rs28.21 billion was raised through the PIB-FRB auction. The auctions, covering multiple maturities, attracted significant participation from institutional investors and demonstrated a stable and positive sentiment in the fixed-income market.
The government accepted MTBs across 1-month, 3-month, 6-month, and 12-month tenors, with the highest uptake in 12-month papers at Rs368.15 billion, followed by Rs251 billion in 3-month bills, Rs68.95 billion in 6-month bills, and Rs61.39 billion in the 1-month tenor. This distribution indicates a pronounced appetite for longer-term instruments as investors seek stability amid evolving market conditions. Cut-off yields remained broadly steady compared with previous auctions, showing slight downward adjustments across all tenors. The 1-month MTB cleared at 10.8873%, while the 3-month and 6-month tenors settled at 11.00%, and the 12-month paper at 11.2681%, reflecting marginal easing in rates and improved market sentiment.
Compared with the last MTB auction, yields exhibited minor declines, with the 1-month rate easing from 10.9884%, the 3-month from 11.0426%, and the 6-month from 11.0499%. The 12-month yield fell from 11.3500% to 11.2681%, indicating investor confidence in potential policy stability and an encouraging outlook for government debt instruments. The strong demand across maturities underscores the resilience of Pakistan’s fixed-income market and suggests that investors are responding to the government’s ongoing measures to maintain fiscal balance and market liquidity.
In the 10-year PIB-FRB auction, the government accepted a total of Rs28.21 billion, comprising Rs25 billion in competitive bids and Rs3.207 billion in non-competitive bids. The floating-rate bonds were cleared at a cut-off price of 95.4376, demonstrating sustained demand for longer-tenor instruments that are linked to benchmark rates. The success of this auction highlights investor preference for floating-rate securities in a market where interest rate dynamics and inflation expectations play a critical role in shaping investment decisions.
Overall, the MTBs and PIB-FRB auction reflect SBP’s ability to efficiently mobilize resources and maintain active engagement with the investment community. The outcome reinforces the government’s commitment to offering diverse instruments that cater to various investor preferences while supporting broader macroeconomic objectives. Continued participation in these auctions is expected to contribute to enhanced liquidity, better risk management, and stability in Pakistan’s financial markets.
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