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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on Sep 06, 1999

Short Term

The money market remained tight throughout the past week. Overnight trading was conducted at 12.90% and 12.95%. Banks continued to approach the State Bank repo window for respite. According to unconfirmed report, the discounting figure touched a maximum of Rs. 8 billion but later eased off to around Rs. 2 billion. One week to 9 day funds also changed hands a high as 12.90% and 12.50%. The T-Bill maturity of Rs. 12.30 billion falling on the 5th of September would not be scheduled for the 7th as government announced a public holiday for the 6th.

Medium Term

The market saw another sharp rise in term levels. With the discounting figure rising sharply and touching close to Rs. 8 billion one month bids touched 9.75% after beign below 9.00% the previous week. Two month rates also saw bids touching 9.75% with nominal amounts changing hands. Panic was also witnessed in the three month tenor as bidders hurriedly covered themselves as high as 9.20%. However rates fell off with offers available at 9.00% and bids in the band of 8.70%. The one month saw offers falling from a high of 9.75% to 8.50% but trades were hard to come by with the ease on rates. State Bank announced the weekly OMO with outright sale of T-Bills as well but all bids were rejected which did not come as a surprise for the market.

Long Term

Nominal amounts traded in the one year paper at yields close to 10.00%. Later the 12/8/99 papers also changed hands at yields of 10.15% with offers falling back to 10.05% and bids in the bands of 12.25%.

 

 Yield profile

Overnight

This week

1 wk ago

1 yr ag

12.95

12.95

00.35

1 Week

12.00

12.50

00.75

1 Month

08.90

09.00

05.50

3 Month

08.70

08.65

10.25

6 Month

09.35

09.15

11.90

1 Year

10.25

10.35

N. A.

 

Treasury Bill Rates

 

This week

1 wk ago

1 yr ago

1 Month

09.75

09.75

07.00

2 Month

09.10

09.25

09.00

3 Month

09.00

09.00

11.00

4 Month

09.00

09.15

11.50

5 Month

09.25

09.25

12.00

 

Federal Investment Bond

 

This week

1 wk ago

1 yr ago

1 Year

10.25

10.35

13.90%

2 Year

12.50

12.25

14.80%

3 Year

13.00

12.75

15.80%

4 Year

13.25

13.00

15.10%

5 Year

13.50

13.50

15.50%

10 Year

14.00

14.00

16.00%

 

AUCTIONS

Bid Date

Instrument

Result

Settlement

Aug 25

T-BILL

Aug 25

Aug 26

Target Amount

Bid Amount

Accepted Amount

Rs.15.5 Bln.

Rs.25.585 Bln

Rs10.685Bln.

 

MATURITIES

Instrurnent

Data

Amount

T-Bill

05 Sept

12,300 mln

T-Bill

08 Sept

10,400 mln

T-Bill

22 Sept

14,310 mln

T-Bill

30 Sept

5,560 mln