SBP raises around Rs778bn through MTBs, PIB-FRB Auction

December 26, 2025 (MLN): The State Bank of Pakistan (SBP) has collectively raised Rs777.69 billion through the latest Market Treasury Bills (MTBs) and the 10-year Pakistan Investment Bond – Floating Rate (PIB-FRB) auction.

Of this, Rs749.48bn was raised through MTBs against a target of Rs650bn, while an additional Rs28.21bn was secured in the 10-year PIB-FRB auction.

The government accepted a total face value of Rs749.48bn in MTBs across the 1-month, 3-month, 6-month, and 12-month tenors.

The highest participation was seen in the 12-month papers, where acceptance reached Rs368.15bn, followed by Rs251bn in 3-month bills, Rs68.95bn in 6-month bills, and Rs61.39bn in the 1-month tenor.

Cut-off yields in the latest auction remained broadly steady. The 1-month bill cleared at 10.8873%, the 3-month and 6-month tenors at 11.00%, while the 12-month paper settled at 11.2681%.

Compared with the previous MTB auction, yields showed a mild downward adjustment across all maturities. The 1-month rate eased from 10.9884%, the 3-month from 11.0426%, and the 6-month from 11.0499%.

The 12-month yield also declined from 11.3500% to 11.2681%, signalling an improvement in market sentiment and expectations of policy stability.

In the separate PIB-FRB auction, the government accepted a total of Rs28.21bn, comprising Rs25bn in competitive bids and Rs3.207bn in non-competitive bids.

The 10-year floating-rate bonds cleared at a cut-off price of 95.4376, reflecting continued demand for longer-tenor instruments indexed to benchmark rates. 

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