Pakistan's treasury bill yields decline to multi-year lows

The State Bank of Pakistan (SBP) has raised PKR 434 billion in the first Treasury Bill (T-Bill) auction of 2025 with yields declining to multi-year lows.

The SBP had set a target of PKR 250 billion for the auction. However, the sale surpassed the target by a significant margin.

The auction saw cut-off yields drop to multi-year lows, with the three-month yield at 11.78% (a decrease of 22 basis points, the lowest since March 2022), the six-month yield at 11.79% (a decrease of 21 basis points, the lowest since February 2022), and the 12-month yield at 11.80% (a decrease of 50 basis points, the lowest since February 2022).

The total bids received amounted to PKR 1,552 billion, showcasing robust investor interest.

The government plans to raise PKR 5.254 trillion through the sale of treasury bills and investment bonds in the first quarter of 2025.

The SBP's schedule indicates that six T-bill auctions will be conducted during the quarter, targeting PKR 2.2 trillion.

Meanwhile, maturing T-bills during the period amount to PKR 3.45 trillion.

Additionally, three auctions of fixed rate Pakistan Investment Bonds (PIBs) aim to raise PKR 1.05 trillion. Maturing PIBs in current quarter amount to PKR 70 billion.

Moreover, the government will also raise PKR 2.0 trillion through six auctions of floating rate PIBs during the period.