Auction Result: Govt raises Rs1.5tr through T-bills

July 09, 2025 (MLN): Today's Treasury bill auction drew strong investor interest on Wednesday, enabling the State Bank of Pakistan (SBP) to raise Rs1.49 trillion, comfortably exceeding its Rs1.35tr target.

The auction attracted bids totalling Rs2.74tr, translating into a healthy bid-to-cover ratio of 1.84. The SBP accepted roughly 54.5% of bids, including Rs392.6 billion via the non-competitive route.

Cut-off yields reflected a mixed trend. The yield on the benchmark 12-month paper fell 13 basis points to 10.80%, signaling investor confidence in near-term rate stability.

Meanwhile, the 1-month T-Bill yield climbed 24bps, indicating lingering caution around immediate liquidity or policy risks.

Breakdown of bids showed Rs323bn offered for 3-month, Rs373bn for 6-month, and a hefty Rs1.06tr for 12-month tenors.

The central bank accepted Rs168 billion, Rs164 billion, and Rs564 billion, respectively.

This strong participation indicates the market’s appetite for government securities amid improving macro signals and expectations that policy rates may have peaked. Further, it seems that Investors are locking into attractive yields, especially on the longer end. 

In contrast, the previous auction on June 25 had seen tepid demand, with the SBP raising just Rs345bn against a Rs650bn target. 

Copyright Mettis Link News