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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on Oct 18, 1999

Short Term

The inter-bank market was tight throughout the past week with rates closing at 12.95%. The overnight market remaining tight and short, even with an inflow of Rs. 8 billion by way of an OMO injection, did come as surprise. The market had been running short by approximately Rs. 2-3 billion before the bank holiday on Wednesday but the discounting on Thursday was yet again Rs. 1.5 billion and rose to Rs. 5 billion on Friday. Trades were conducted between 11.50% and 12.95% on Saturday without any discounting being conducted at the end of the day.

Medium Term

Term rates moved between wide band on account of the OMO injection, the change in the discounting figures and also due to the uncertainty in the market due to the change in the country's political setup. One month levels were hovering in the band of 11.10% and 11.50% in the early parts of the week but after the injection on Thursday rates eased off with bids and offers falling to as low as 9.40% and 9.75%. Two month rates fell off sharply with trades in quick session at 10.00% and later at 9.50%. However rates fell off steeply on Friday with few desperate lenders placing funds even at 9.00% before rates rose back upto 9.75%. The three and six month tenors were quiet with no trades being reported as offers remained at close to 10.25% and 10.50% respectively, at the end of the week.

Long Term

No significant interest was evident in long term instruments.

 

YIELD PROFILE

 

FEDERAL INVESTMENT BONDS

  THIS WEEK 1 WK AGO 1 YR AGO
1 Year 11.40 11.75 15.00%
2 Year 12.30 12.50 15.00%
3 Year 13.50 13.25 15.50%
4 Year 13.75 13.75 15.75%
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

 


 

REPO RATES

 

This Week

1 Wk Ago

1 Yr. Ago

Overnight 12.95 12.95 16.45
1 Week 12.50 12.60 16.35
1 Month 09.90 11.20 14.65
3 Month 10.30 10.55 13.85
6 Month 10.80 10.75 13.90
1 Year 11.40 11.75 N. A.

 


 

TREASURY BILL RATES
Maturing This Week 1 Wk Ago 1 Yr Ago
1 Month 11.25 11.90 14.75
2 Month 10.20 11.20 14.25
3 Month 10.60 10.65 14.00
4 Month 10.70 10.65 14.00
5 Month 10.75 10.75 14.10