SBP Secures Rs636B in Debt Auctions Today

Islamabad, August 20, 2025, 09:34 PM PKT — The State Bank of Pakistan (SBP) has executed a financial triumph, concluding two debt auctions on Wednesday, amassing Rs636 billion through Market Treasury Bills (MTBs) and Pakistan Investment Bonds – Floating Rate (PFL), signaling market stability with steady yields, as per official results. The government secured Rs526.97 billion (face value) in T-bills across 1-month, 3-month, 6-month, and 12-month tenors, including non-competitive bids: Rs88.8 billion at 10.90% (1-month), Rs66.2 billion at 10.85% (3-month), Rs76.5 billion at 10.85% (6-month), and a record Rs295.4 billion at 10.999% (12-month), anchoring yields between 10.8–11% and reflecting investor confidence in fiscal management amid economic recovery.

In a separate auction, Rs109.3 billion (face value) was raised via 10-year floating rate PIBs, settling on August 21, with Rs100 billion in competitive bids and Rs9.25 billion non-competitive, at a cut-off price of 95.5244 (range 93.48–95.52), showing cautious optimism. This success underscores robust demand for government debt and faith in Pakistan’s financial system, aiding funding needs and fiscal policy. Web context on debt markets shows past volatility, while posts found on X reflect cautious hope—some praise stability, others question sustainability. Critically, the narrative of “financial strength” may mask debt reliance—web data hints at long-term risks, and X sentiment suggests distrust in enduring gains, pointing to potential vulnerabilities.