SBP raises around Rs552bn in MTBs, PIB auctions

September 03, 2025 (MLN): The State Bank of Pakistan (SBP) raised Rs551.97 billion through its latest auctions of government securities held on September 3, 2025.

The combined proceeds came from two separate auctions: Rs515.23bn from Market Treasury Bills (MTBs) against the target of Rs400bn and Rs36.74bn from 10-year Pakistan Investment Bonds (Floating Rate) against the target of Rs100bn.

The government's willingness to accept higher short-term funding costs while missing long-term targets reflects immediate liquidity pressures over debt sustainability concerns.

The settlements will be completed on September 4, 2025.

The treasury bill auction attracted overwhelming demand with total bids worth Rs1.476 trillion across four tenors.

The government accepted Rs515.23bn, including non-competitive bids, significantly exceeding the initial target.

Cut-off yields remained elevated across all maturities: 12-month bills commanded the highest yield at 10.9999%, followed by six-month papers at 10.8501%, three-month bills at 10.8502%, and one-month securities at 10.7512%.

The weighted average yields were marginally lower but remained close to the 11% policy rate.

The 10-year Pakistan Investment Bond (Floating Rate) auction received total bids of Rs444bn, but the government accepted only Rs36.74bn, indicating selective acceptance criteria.

The bonds were priced at a cut-off of 95.5344, with competitive bids totaling Rs28bn and non-competitive bids adding another Rs8.74bn.

The price range varied from 93.7086 to 95.8082, showing diverse investor valuations for longer-term government debt.

Government Securities Auction Summary

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