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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on Sep 20, 1999

Short Term

Volatility persisted in the interbank money market with overnight trades between wide bands. In the early parts of the week banks covered themselves at 12.50% and 12.90% but later in the week levels fell off in to single digits and trades were seen at 7.00% and 9.00%. However at the end of the day trades jumped with last deals at 12.90%. This trend was witnessed till Friday with Rs. 7.65 OMO maturity falling. However a day earlier the Sate Bank had already mopped up Rs. 5.00 billion from the system. Rates fell sharply on Friday with trades early in the day between 4.50% and 6.00% while funds for three days were also trades as low as 4.50% while on the higher end trades were conducted at 6.00%. Besides trades as such low levels deals were also reported as high as 12.90%. Saturday saw rates rising at start with desperate borrowers covering as high as 11.50% and 12.00%. Heavy amounts traded at 10.00%, while later offers fell off sharply with activity at 7.00%, 5.00% and later again at 7.00%.

Medium Term

Term levels went through a volatile phase as well with one month trades cross a wide band of 8.40% and 9.10%. Most the trades were witnessed in the later half of the week at 8.65% while call deals in the same tenor were witnessed around 9.80%. Borrowers continued to be interested in the two month tenor as the month of October only has a maturity of Rs.3.585 billion and were willing to cover at 9.50% and 9.75% but offers were unavailable. Later bids fell to 9.25% while call deals were witnessed at 10.25% and 10.35%. Three month bids and offers were quoted at 9.35% and 9.60% with trades amounts trading at 9.40%. However after the acceptance of Rs.5 billion for the three month tenor in the OMO at a level of 8.95% bids fell into the band of 8.60%. Offers were available at 9.00% but with bids moving up to 8.90% offers also rose with lenders only willing at 9.30%. The six month tenor was inactive in the past week with bids and offers in the wide band of 10.10% and 10.70% but offers fell of 10.40% while bidders were willing at 10.10%.

Long Term

Activity remained scarce for one year papers with offers for the 9th September paper at 10.20% but bidders were interested at 10.60% but later bids fell below 10.50%. However rates remained mismatched at the end of the week.

YIELD PROFILE

                                       This Week I Wk. Ago 1 Yr. Ago

1 Year 10.50 10.50 13.75%
2 Year 12.25 12.25 13.75%
3 Year 13.00 13.00 14.50%
4 Year 13.25 13.25 14.75%
5 Year 13.50 13.50 15.00%
10 Year 14.25 14.50 16.00%

 

AUCTIONS

Bid Dates Instrument Result Settlement
Sep 08 T-BILL Sep 08 Sep 09
Amount Asked Bid Amount 1 Year Ago
Rs.21.8 Bln. Rs.28.00 Bln Rs19.00 Bln.

 

MATURITIES

Instrument Date Amount
T-Bill 05 Sep 12,300 Mln
T-Bill 08 Sep 10,400 Mln
T-Bill 22 Sep 14,310 Mln
T-Bill 30 Sep 5,560 Mln

 

REPO RATES

. This week 1 Wk ago 1 Yr ago
Overnight 07.00 09.50 00.35
1 Week 07.25 08.50 01.00
1 Month 08.90 08.60 05.57
3 Month 09.10 09.15 09.50
6 Month 10.35 10.15 11.65
1 Year 10.50 10.50 N. A.

 

TREASURY BILL RATES

Maturing This Week 1 Wk. Avo 1 Yr. Avo
1 Month 09.50 09.25 07.00
2 Month 09.75 09.75 08.50
3 Month 09.50 09.50 10.50
4 Month 09.75 10.00 11.00
5 Month 10.25 10.25 11.50