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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on Nov 08, 1999

The interbank overnight market remained at the higher end of the spectrum throughout the early part of the past week. Trades were conducted between 12.50% and 12.95% with banks having to approach the SBP repo window where according to unconfirmed reports Rs. 20 billion was discounted on Thursday. However this was only due to the mismatch of the settlement and the maturity dates of the T-Bill auction. Dealers were caught by surprise when the market went short by another Rs. 5 bln even with a net inflow of approximately Rs. 8 bln with trades between 11.00% and 12.90%, on Friday. Levels eased off on Saturday with the market closing at around 9.00% but not before trades were conducted at 12.75%. The one month market moved between a wide band of 6.75% and 9.00% during the week with trades around 7.25% early in the week while at 9.00% at the close on Saturday. Three month tenor rates were however within 8.50% and 9.25% with deals being conducted around 8.70%. Later the hike in these levels was only witnessed on Saturday as bids touched 9.00%. The State Bank managed to pick up a sizeable amount while keeping the cut-off levels relatively unchanged as follows; the levels for the 3, 6 and 12 month papers were 8.87%, 10.36% and 10.99%, respectively with a total amount of Rs. 28.375 bln being picked up. Another T-Bill maturity of Rs. 3.55 bln on the 10th is expected to keep overnight rates under pressure. However, with already Rs. 12.20 billion of the newly issued prize bonds being purchased till 31st Oct. further outflows from the system on the same account could also keep short term rates in double digits.

 

YIELD PROFILE

 

FEDERAL INVESTMENT BONDS

  THIS WEEK 1 WK AGO 1 YR AGO
1 Year 10.70 10.15 13.00%
2 Year 11.00 11.75 13.75%
3 Year 13.00 12.50 14.25%
4 Year 13.25 12.75 14.50%
5 Year 13.75 13.00 15.00%
10 Year 14.25 14.00 16.00%

 


 

AUCTIONS
Bid Date Instrument Result Settlement
Nov 03 T-BILL Nov 03 Nov 04
Amount
Asked
Bid
Amount
1 Year
Ago
Rs.29.9 Bln. Rs.40.150 Bln Rs.28.375

 


 

MATURITIES
Instrument Data Amount
T-Bills 05 Nov 26,420 Mln
T-Bills 10 Nov 3,550 Mln
T-Bills 17 Nov 5,000 Mln
T-Bills 26 Nov 800 Mln

 


 

REPO RATES

 

This Week

1 Wk Ago

1 Yr. Ago

Overnight 08.50 12.90 03.50
1 Week 07.00 11.00 02.50
1 Month 08.35 07.65 05.50
3 Month 08.70 08.85 07.75
6 Month 09.70 09.65 10.25
1 Year 10.70 10.15 N. A.

 


 

TREASURY BILL RATES
Maturing This Week 1 Wk Ago 1 Yr Ago
1 Month 09.00 08.25 06.00
2 Month 09.10 08.50 07.00
3 Month 09.15 09.00 08.50
4 Month 09.25 09.25 09.50
5 Month 09.50 09.45 10.50