SBP raises around Rs582bn through T-Bills

March 04, 2026 (MLN): The State Bank of Pakistan (SBP) raised Rs 581.7 billion from the sale of Market Treasury Bills (MTBs) on Wednesday, while rejecting all bids in a simultaneous auction for 10-year Pakistan Investment Bonds (PIBs) – Floating Rate. 

In the MTB auction with settlement on March 5, the central bank received total bids worth Rs 915.45 billion in face value, translating into a realized value of Rs 870.86 billion.

Out of this, competitive bids amounting to Rs 336.91 billion in face value were accepted, while non-competitive bids lifted total acceptance to Rs 581.67 billion in face value, equivalent to Rs 555.02 billion in realized value.

Across maturities, the one-month T-Bill was cut at 10.4955%, with a weighted average yield of 10.3248%, as Rs 89.30 billion was accepted in face value terms under competitive bids.

The three-month paper cleared at 10.5001%, with a weighted average yield of 10.4150%, and Rs 41.42 billion was accepted competitively. The six-month tenor was cut at 10.7401%, carrying a weighted average of 10.7189%, with Rs 63.17 billion taken.

The 12-month tenor carried the highest cut-off yield at 10.9928%, with a weighted average yield of 10.9144%, as Rs 143.03 billion was accepted under competitive bids.

In addition to competitive participation, non-competitive bids totaled Rs 244.75 billion in face value, of which Rs 237.18 billion was realized.

Compared with the previous auction held on February 18, 2026, cut-off yields increased across all maturities, reflecting a broad-based upward shift in rates.

The one-month yield rose by 35 basis points from 10.1482% to 10.4955%. The three-month tenor increased by 21 basis points from 10.2853% to 10.5001%. The six-month paper climbed 30 basis points from 10.4437% to 10.7401%. The sharpest adjustment was recorded in the 12-month tenor, where the cut-off yield surged 39 basis points from 10.5996% to 10.9928%.

The upward movement across the curve signals a clear repricing of short- to medium-term interest rates within just over two weeks, indicating heightened rate expectations and a rising term premium.

Cut-off Yield Comparison

Notably, provincial governments placed Rs200 billion in three-month T-Bills, all of which were accepted, underscoring substantial short-term liquidity deployment by public sector entities.

Cumulatively, the largest share of total acceptance, inclusive of competitive and non-competitive bids, was concentrated in the three-month tenor at Rs260.29 billion, followed by Rs 154.80 billion in 12-month paper, Rs 95.11 billion in one-month bills and Rs 71.46 billion in six-month bills. 

In contrast, the auction for 10-year Pakistan Investment Bonds – Floating Rate (PFL) Semi-Annual, also conducted on March 4 with settlement on March 5, concluded without any acceptance.

The central bank received bids totaling Rs 256.5 billion in face value, with quoted prices ranging between 96.4831 and 94.1569. However, all bids were rejected, and no competitive or non-competitive allocations were made.

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