SBP raises Rs636bn in MTB, PIB-Floating auctions

August 20, 2025 (MLN): The State Bank of Pakistan (SBP) successfully conducted two debt auctions on Wednesday, raising a combined Rs636 billion through Market Treasury Bills (MTBs) and Pakistan Investment Bonds – Floating Rate (PFL), with cut-off yields showing stability across most tenors.

The government mobilized Rs526.97 billion (face value) through the sale of 1-month, 3-month, 6-month, and 12-month treasury bills, inclusive of non-competitive bids.

• 1-Month T-Bill: Rs88.8bn raised at a cut-off yield of 10.90%, marginally higher than the weighted average of 10.87%.

• 3-Month T-Bill: Rs66.2bn mobilized, cut-off yield settled at 10.85%.

• 6-Month T-Bill: Rs76.5bn accepted at 10.85%.

• 12-Month T-Bill: The largest participation was seen in this tenor, with Rs295.4bn accepted at a slightly higher cut-off of 10.999%.

The results signal that yields have remained anchored around the 10.8–11% range, reflecting market expectations of a stable near-term interest rate outlook.

In a separate auction, the SBP raised Rs109.3bn (face value) through the issuance of 10-year floating rate PIBs, with settlement scheduled for August 21, 2025.

• Competitive bids worth Rs100bn were received, while an additional Rs9.25bn came from non-competitive participation.

• The cut-off price was set at 95.5244, within the price range of 93.48–95.52, indicating cautious investor positioning at current floating benchmarks.

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