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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on August 22, 1999

Short Term

Early parts of the week witnessed rates at the lower end of the spectrum but rates took a sharp turn after the OMO on Thursday. After an extended weekend overnight rates remained in the band of 2.00% and 4.00 Monday to Wednesday. One week levels were also within the band of 5.00% and 6.50% with no active interest. It was the unexpected acceptance of Rs. 10 billion in the OMO that brought rates around the double digit mark. Trades were also witnessed as high as 12.90% on Friday but the band on Saturday was again at 10.50% and 12.50%. Moderate amounts also changed hands around 11.00% in the one week tenor on the weekend.

 

Medium Term

The term market did witness a volatile trend throughout the past week specially after the OMO acceptance but the general sentiment remained the same. Bank having covered one month early in the week between 5.30% and 5.75% were lucky as rates shot up as high as 7.50% on the weekend. Two month trades initially at 6.00% were later conducted as high as 7.25% with rates falling bank to 7.00% while three month was the most actively traded. Lending from certain quarters from the market kept the trading band between 6.50% and 7.00%. Heavy actively was conducted after the OMO result in the narrow band of 6.75% and 7.00% with later offers rising to 7.25% and bids not crossing 7.00%. The five month levels were volatile with bids at 7.25% later rising to 7.60% but offers remaining unmoved from 7.75%.

 

Long Term

The rise in the OMO cut-off saw trades being conducted for the latest one year papers. It was after quite a while before these papers were traded. Offers at 10.20% and 10.25% were quickly squared off in the market and later another heavy trading spree was witnessed around 9.90%.

 

Repo Rates

                                               This Week l WK Ago 1 Yr. Ag

Overnight

12.75

11.50

00.50

1 Week

11.50

09.00

01.25

1 Month

07.50

06.25

06.75

3 Month

07.10

06.10

10.50

6 Month

07.70

07.10

12.25

1 Year

10.00

09.40

N. A.

 

                                            This Week 1 Wk. Avo 1 Yr. Avo

1 Month

08.25

07.25

08.00

2 Month

08.00

07.00

09.25

3 Month

07.75

06.75

11.00

4 Month

07.75

06.75

11.75

5 Month

08.00

07.50

12.00

 

                                          This Week I Wk Ago I Yr. Ago

1 Year

10.00

09.40

15.50%

2 Year

12.00

12.00

15.50%

3 Year

12.75

12.75

15.75%

4 Year

13.25

13.25

15.75%

5 Year

13.00

13.25

16.00%

10 Year

14.00

14.00

16.50%