. .



1_popup_home.gif (1391 bytes) market.gif (6606 bytes)

FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on August 29, 1999

Short Term

The interbank market remained at the higher end of the spectrum throughout the past week with banks having to approach the State Bank for respite towards the weekend. Overnight trades were witnessed at 12.00% and 12.25% on Monday but rates rose with the market closing short by approximately Rs. 7 billion on Thursday, the settlement day for the T-Bill auction. Funds changed hands at as high as 12.99% but majority of the trades were reported at 12.95%. One week activity was also conducted at 12.25% but later banks finally covered their positions at 12.90% while two week and ten day funds also changed hands between 12.25 % and 12.75%.

Medium Term

The term market saw active interest with banks focusing on the one and two month tenors. Most of the activity was also reported in these tenors. One month levels rose sharply after the auction settlement with offers touching as high as 9.50%. Trades were scarce at this level as offers eased off marginally to 8.75% and 9.00%, moderate amounts were dealt. Two month trades were conducted at around 8.75% while similar levels were reported in forwards dates as well towards the weekend. The T-Bill auction target of Rs. 15.50 saw a total amount of Rs. 25.585 billion being bid while SBP picked up Rs. 10.685bn. The cut-offs for the three, six and 12 months papers were 7.93%, 10.00% and 10.228%, respectively. The six month cut-off came as a surprise and caused six month offers to rise sharply to 10.00% but offers soon fell off to 9. 50% while bids for five and six months remained in the band of 8.75% and 9.00%.

Long Term

Interest remained evident in one year papers with the nominal amounts in the 12/8/99 issue trading around 10.25%. Later offers fell off to 10.00% with bids remaining at 10.25%.

Overnight

12.95

12.75

00.75

1 Week

12.50

11.50

01.25

1 Month

09.00

07.50

07.75

3 Month

08.65

07.10

12.15

6 Month

09.15

07.70

12.65

1 Year

10.35

10.00

N. A.

 

1 Month

09.75

08.25

09.50

2 Month

09.25

08.00

11.50

3 Month

09.00

07.75

12.25

4 Month

09.15

07.75

12.40

5 Month

09.25

08.00

12.60

 

1 Year

10.35

10.00

14.35%

2 Year

12.25

12.00

14.35%

3 Year

12.75

12.75

15.00%

4 Year

13.00

13.25

15.00%

5 Year

13.50

13.00

15.75%

10 Year

14.00

14.00

16.00%