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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on Oct 11, 1999

Short Term

Money market rates remained at the higher end of the spectrum with overnight trading at 12.90% and 12.95%. The market was short throughout the week as inflows could not match the outflow of Rs. 2.30 billion by way of the T-Bill auction settlement on the 7th of October. Amounts accepted in the OMOs in the week before last had left the market short and a maturity of approximately Rs. 1 billion on the 7th only could not square off the shortness in the system. The sentiment remained bullish as the entire month of October is expected to remain tight. One week rates were also within the band of 12.50% and 12.90% with nominal amounts changing hands. The continuous tightness in the money market has now made chances of an injection by way of an OMO stronger.

Medium Term

Volatility persisted in the term repo market with concentration in the one and two month tenors. Levels for one month crossed into the 11.00 band with trades around 11.25% while later offers were unavailable at less than 11.75%. Banks short m securities were active for two months with trades as high as 11.75% while earlier in the week trades were also reported at 11.40%. Repo trades, on the other hand, were witnessed initially at 10.50% while later bids rose to as high as 10.80% but fell with as offers fell back to 10.50%. The three and six month tenors had bids at 10.50% while offers were available at 10.75%. Nominal amounts traded in both the tenors at around 10.75%. Against a target of Rs. 2.2 billion the State Bank managed to attract a total amount of Rs. 7.21 billion. SBP accepted a single bid of Rs. 2.30 billion at 10.35% against the six month instrument. Term rates are expected to ease off slightly as the OMO nears. In fact an injection on Monday could also not be ruled out.

Lone Term

No significant interest was evident in long term instruments.

                                    

REPO RATES

 

This Week

1 Wk Ago

1 Yr. Ago

Overnight

12.95

12.95

16.45

1 Week

12.60

11.50

16.40

1 Month

11.20

10.75

14.65

3 Month

10.55

10.40

14.00

6 Month

10.75

10.60

14.50

1 Year

11.75

11.25

N. A.


TREASURY BILL RATES
Maturing This Week 1 Wk Ago 1 Yr Ago

1 Month

11.90

11.50

15.75

2 Month

11.20

11.00

15.00

3 Month

10.65

10.75

14.75

4 Month

10.65

10.75

14.50

5 Month

10.75

10.65

14.65

   


FEDERAL INVESTMENT BONDS

This Week

1 Wk Ago

1 Yr Ago

1 Year

1.75

11.25

15.50%

2 Year

12.50

12.50

15.50%

3 Year

13.25

13.50

16.00%

4 Year

13.75

13.60

16.10%

5 Year

14.00

14.00

16.50%

10 Year

14.50

14.50

17.50%


AUCTIONS
Bid Date Instrument Result Settlement
Oct 06 T-BILL Oct 06 Oct 07
Amount Asked Bid Amount 1 Year Ago
Rs.2.2 Bln. Rs.7.210 Bln Rs2.300 Bln.

 


MATURITIES
Instrument Data Amount
T-Bill 13 Oct 2,200 Mln
T-Bill 19 Oct 175 Mln
T-Bill 20 Oct 1,210 Mln