SBP raises Rs680bn through MTB Auction

Mettis Global reported that the State Bank of Pakistan (SBP) raised Rs680.07bn at face value through its latest Market Treasury Bill auction. Investors tendered Rs2,773.85bn across four maturities, with the one-month paper drawing the heaviest demand at Rs1,171.27bn. Primary dealers ran the tender on September 2, and the proceeds settle on September 3.

Competitive bids worth Rs284.24bn were allotted, and the three-month tenor took the largest share at Rs138.52bn, while its cut-off yield stood at 11.5992%. Non-competitive bids added a further Rs395.83bn, and Rs275.00bn of that came from provincial government entities. Compared with the August 19 sale, the one-month cut-off yield dropped 8.2bps to 11.3875%, the three-month fell 4.6bps, and the six-month rose 10.1bps to 11.8990%.

Across all tenors, the total accepted amount reached Rs680.07bn, led by Rs387.82bn in the three-month paper. The one-month tenor accounted for Rs123.58bn, the six-month for Rs121.02bn, and the twelve-month for Rs47.64bn. The 12-Month yield stayed flat at 11.9900%, while the one-month yield posted the largest decline of the four.