Pakistan central bank raises PKR 982B through T-bills auction
Yields for short-term one-month and three-month bills fall by upto 0.04 basis points
Business Desk
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The SBP has planned to raise PKR 3.85 trillion via T-bills auction from December to February
Pakistan’s central bank raised PKR 982 billion through the auction of treasury bills or T-bills on Wednesday.
According to the State Bank of Pakistan (SBP), the borrowing was PKR 18 billion short of the targeted PKR 1 trillion.
The yields for short-term bills — one-month and three-month — fell by 0.04 and 0.01 basis points (bps), while those of six-month and 12-month bills remain unchanged.
The yields for one-month T-Bills fell from 10.89% to 10.85% and three-month from 11% to 10.99%. The yields for six-month and 12-month bills remain unchanged at 11% and 11.27%, respectively.
The largest amount of PKR 561 billion was raised via the 12-month bill, followed by PKR 237 billion via the three-month tenor T-bills. The central bank only raised PKR 150 billion and PKR 33 billion via the one-month and six-month T-bills, respectively.
During the previous auction on November 26, the SBP raised PKR 749 billion against the targeted amount of PKR 650 billion.
The SBP has planned to raise PKR 3.85 trillion via T-bills auction to meet fiscal financing needs and refinance maturing debt from December to February.
According to the Domestic Markets & Monetary Management Department, the central bank plans to generate PKR 3.85 trillion through seven T-Bills auctions by February 2026. The auctions are intended to refinance PKR 3.884 trillion in maturing short-term debt.
What are T-bills and PIBs?
The Pakistan government raises money from local and foreign investors through debt instruments. T-bills are one of those instruments backed by the government. Other such instruments are Pakistan Investment Bonds (PIBs), National Savings instruments, Eurobonds, International Sukuk, etc.
T-Bills are short-term, highly liquid government securities issued in 3, 6, and 12-month tenors. The State Bank of Pakistan auctions T-bills every fortnight (on Wednesdays).
PIBs are debt securities issued by the State Bank of Pakistan. These bonds are issued in denominations of multiples of PKR 100,000 and available in tenors of 3, 5, 10, and 20 years. The yield on these bonds is fixed and disbursed semi-annually.
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