Pakistan’s government successfully raised Rs. 1 Trillion in the latest Treasury Bill (T-Bill) auction, more than double the target of Rs. 450 billion. The auction, held on Wednesday, attracted strong investor participation, highlighting continued confidence in government securities.
According to the State Bank of Pakistan (SBP), the total funds of Rs. 1 Trillion included Rs. 319.8 billion raised through competitive bidding and Rs. 677.2 billion through non-competitive bids. This brought the total amount raised to Rs. 997 billion, effectively crossing the Rs. 1 Trillion mark.
The cut-off yields showed mixed results. The 1-month T-Bill yield slightly declined by 4.9 basis points (bps), while the 3-month T-Bills rose by 9 bps. The 6-month T-Bills saw a notable increase of 12 bps, reaching 10.44%, up from 9.94% on 18 February.
Breaking down the auction, the government raised Rs. 70 billion for the 1-month paper, Rs. 82.9 billion for the 3-month paper, Rs. 31 billion for the 6-month paper, and Rs. 135.9 billion for the 12-month T-Bills. The strong demand helped the government exceed expectations and reach close to Rs. 1 Trillion in total funding.
Experts say the rise in T-Bill yields reflects higher investor expectations for returns amid changing economic conditions. The results indicate that both competitive and non-competitive participants remain confident in short-term government securities.
The auction also serves as a key indicator of Pakistan’s short-term debt market and investor sentiment. The government’s ability to raise Rs. 1 Trillion demonstrates robust market participation and reinforces the importance of T-Bills in managing public finances efficiently.
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This historic auction underscores Pakistan’s strong domestic demand for safe investment instruments while highlighting the impact of rising yields on borrowing costs and market liquidity.
