Pakistan’s central bank borrows PKR 776 billion through T-Bills amid slight change in yields

The State Bank of Pakistan (SBP) held a treasury bills (T-bills) auction on Wednesday, raising PKR 776 billion against a target of PKR 800 billion, with total participation amounting to PKR 1.844 trillion.

The yield on the three-month bonds decreased by 20 basis points to 13.7% compared to the last auction on October 30. The yield for the six-month bonds remained flat at 13.499%, while the yield for the 12-month bonds increased by 10 basis points to 13.0997%.

The government aims to raise PKR 8.7 trillion through treasury bills and bonds from November to January to meet budgetary needs and refinance debt. This includes PKR 5.5 trillion through short-term T-bills with maturities of three, six, and 12 months, and PKR 3.2 trillion through Pakistan Investment Bonds (PIBs) with maturities of two, three, five, and 10 years.

The total maturity amount for T-bills and PIBs during this period is projected to be PKR 6.85 trillion. An analyst said the auction target reflects the government's borrowing needs to meet higher fiscal demands, refinance debt, and stabilize the economy.