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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on Nov 22, 1999

During the entire week the interbank money market remained well within single digit levels. Even an outflow of Rs 3.0 bln (OMO) early in the week did not bring about much change and overnight activity was conducted around 2.00% and 3.00%. Rates did rise on the 18th due to the mismatch in the T-Bill auction settlement and maturity dates, which caused overnights to trade around the double-digit levels as well. However rates fell back towards the weekend with activity mostly between 4.00% and 6.00%. In the latest auction settlement on the 18th of November SBP picked up a total amount of Rs 6.35 bln and also at levels below the previous cut-off. The cut-offs of the 3, 6 and 12 month papers were 8.87%, 10.22% and 10.89%, respectively. The one month market fell off sharply with rates as low as 6.25% but later rose back up to 7.00% with amounts trading between the range. Two and three month trades were witnessed after the announcement of the auction result between the narrow band of 8.50% and 8.75% but later offers rose upto 9.00% and 9.25%, respectively. Six month offers after rising early in the week to 10.15 fell off to 9.75%; while interest in the latest paper was evident with buyers interested at 10.60% and sellers at 10.40%, towards the week's close.

No major change is expected in short term rates even with the OMO outflow of Rs 1.68 bln on Monday as heavy lending from certain corners prevails in the market. We also expect the spread between one and two and three month rates to remain as withnessed in the past week.

 

YIELD PROFILE

 

FEDERAL INVESTMENT BONDS

1 Year 11.25 11.25 12.30%
2 Year 12.00 12.00 12.60%
3 Year 12.75 12.75 13.25%
4 Year 13.00 13.25 13.50%
5 Year 13.50 13.75 14.00%
10 Year 14.25 14.50 15.50%

 


 

AUCTIONS
Bid Date Instrument Result Settlement
Nov 17 T-BILL Nov 17 Nov 18
Amount
Asked
Bid
Amount
1 Year
Ago
Rs. 05.9 Bln. Rs. 19.350 Bln Rs. 06.35 Bln

 


 

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

 


 

REPO RATES

 

This Week

1 Wk Ago

1 Yr. Ago

Overnight 05.50 04.50 05.50
1 Week 05.00 05.50 05.75
1 Month 06.75 07.50 06.75
3 Month 08.90 09.00 08.65
6 Month 09.50 09.50 10.35
1 Year 11.25 10.25 N. A.

 


 

TREASURY BILL RATES
Maturing This Week 1 Wk Ago 1 Yr Ago
1 Month 07.75 08.50 07.75
2 Month 09.00 09.10 08.50