The State Bank of Pakistan (SBP) raised Rs1.172 trillion through its latest auctions of Market Treasury Bills (T-bills) and 10-year Pakistan Investment Bond (PIB) floaters, exceeding the combined target of Rs1.1 trillion.
Strong investor participation, with total bids surpassing Rs2.45 trillion, led to a slight decline in yields and reinforced expectations of monetary policy stability.
The T-bill auction generated Rs981 billion against a target of Rs1 trillion, as yields eased modestly. The cut-off rate for one-month T-bills fell by four basis points to 10.85%, while the three-month yield edged down one basis point to 10.90%. The six-month yield remained unchanged at 11%, with the weighted average rate recorded at 11.24%.
The auction attracted Rs1.925 trillion in bids, nearly double the target, with the SBP accepting 89% of bids for three-month paper.
In the PIB floater auction, the central bank raised Rs191 billion against total bids of Rs523 billion. The 10-year PIB was priced at 95.5, implying an 11.69% return, and saw oversubscription of 523%, tightening spreads to 0.79% from 0.80%.
The strong auction performance comes amid easing inflation and growing anticipation ahead of the SBP’s next monetary policy announcement on December 15, where markets widely expect interest rates to remain unchanged.
The fundraising also supports government liquidity needs while signalling potential room for rate adjustments if macroeconomic conditions continue to improve.
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