SBP Raises Rs1.34tr in dual auctions of MTBs, PIB-FR

October 29, 2025 (MLN): The State Bank of Pakistan (SBP) mobilized a total of Rs1.34 trillion (one trillion, three hundred and forty billion rupees) through dual auctions of Market Treasury Bills (MTBs) and Pakistan Investment Bonds – Floating Rate (PIB-FR).

According to SBP data, total bids of Rs2.13 trillion (face value) were received for 1-, 3-, 6-, and 12-month T-bills. The SBP accepted Rs1.13 trillion (face value), including non-competitive bids, with a realized value of Rs1.06 trillion.

The auction results reflected minimal changes in yields across tenors.

• The 1-month and 3-month papers saw slight declines of 11 basis points (bps) and 0.9 bps, settling at 11.0003% and 11.0489%, respectively.

• In contrast, the 6-month and 12-month tenors inched higher by 0.4 bps and 10 bps, closing at 11.0488% and 11.3498%.

This mix of minor movements shows that investors are adopting a neutral short-term view, preferring to roll over maturing investments rather than push for higher yields.

The table illustrates that most of the raised amount, Rs1.13 trillion, came from T-bills, indicating a strong appetite for short-term government securities.

The 12-month paper dominated with over Rs634 billion accepted, showing banks’ preference for medium-term maturities amid expectations of stable rates in the near future.

PIB-FR Auction

In the Pakistan Investment Bonds – Floating Rate (10-Year) auction, the SBP accepted Rs205.88 billion (face value) at a cut-off price of 95.0012, slightly higher than 94.8505 in the previous auction.

This modest improvement in price points to a gradual return of investor confidence in longer-term instruments, though the response remained selective due to lingering uncertainty about long-term interest rate movements.

The total bids received for PIB-FRs stood at Rs1.01 trillion, but the SBP maintained a conservative acceptance strategy, raising Rs190 billion in realized value.

The overall consistency in cut-off yields suggests that the market expects no immediate shift in the monetary policy stance.

Ample liquidity in the banking system allowed banks to roll over maturing securities comfortably without driving yields upward.

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