Qudsia Bano

The State Bank of Pakistan (SBP) has released the auction target calendars for Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs) for December 2025 to February 2026, outlining a domestic borrowing plan of nearly Rs5 trillion for the coming quarter.

The new schedules indicate the government’s continued reliance on domestic financing while maintaining a structured issuance strategy across short-, medium- and long-term maturities.

For fixed-rate PIBs, three auction rounds have been scheduled for December 10, January 7 and January 29. Each auction carries a target of Rs400 billion, taking the cumulative quarterly PIB issuance target to Rs1.2 trillion. The tenors on offer include two, three, five, 10 and 15 years.

Coupon rates have been set at 10.5 percent for two-year bonds, 11 percent for three- and five-year bonds, and 11.5 percent for 10-year bonds, while the 15-year bond will remain a zero-coupon instrument. Tenor-wise allocation for each auction includes Rs100 billion each for two- and three-year bonds, Rs75 billion for five-year bonds, Rs100 billion for 10-year bonds and Rs50 billion for 15-year bonds. Settlement will take place one day after each auction.

The SBP has also announced the semi-annual floating-rate PIB calendar for the same period, with each auction targeting Rs100 billion through the 10-year floating-rate instrument. These auctions are scheduled for December 10, January 7 and February 18. The floating-rate coupon has been set at 10.8974 percent based on prevailing benchmark rates.

On the short-term side, the MTB auction calendar features five auctions on December 10, December 24, January 7, January 21 and February 4. The total quarterly target stands at Rs3.85 trillion against upcoming maturities of Rs3.884 trillion.

Tenor-wise MTB targets include Rs950 billion for one-month bills, Rs1 trillion for three-month bills, Rs900 billion for six-month bills and Rs1 trillion for 12-month bills. The largest single maturity of Rs1.055 trillion is due on December 10.

The MTB schedule also lays out detailed maturity profiles extending into 2026 and early 2027, offering greater visibility to market participants. All auctions will be conducted through primary dealers under the PRISM+ framework, with bidding closing at noon on auction days and results announced the same day.

The latest calendars underscore continuity in the government’s domestic borrowing strategy and provide clear forward guidance to financial markets for the next quarter.

Credit: INP-WealthPk