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Updated on Nov 29, 1999
Interbank rates were well
within double digits during the past week. An OMO outflow of Rs. 1.68 bln on Monday caused
rates to rise sharply with trades as high as 12.00%. Another outflow on account of a fresh
OMO saw rates touching 12.95%. Volatility was witnessed on Saturday with trades in between
12.00% and 12.50% but offers later came off to 11.50% with overnight activity as low as
10.00% towards close. Traders largely attributed this fall in the overnight market on cash
reserve averaging. Bidders having managed to pick up seven day funds within the band of
9.50% and 11.00% fairly early during this week were in for a treat. The market on Thursday
was overwhelmed by the news of the Finance Minister speaking on a possible reduction in
mark up rates as the weekly OMO was scheduled for the same day. This allowed the SBP to
drain a total amount of Rs. 5.5 bln. via the outright sale of T-Bills at a maximum cut-off
of 10.15%. However contrary to this news, term rates in the interbank market were on a
steep rise with three month trades being reported as high as 11.00% while earlier activity
had been witnessed at 10.50%. Amounts for call money also traded for two and three months
in the band of 12.00% and 12.50%. The past week also saw moderate interest in one year
papers. Early in the week bids and offers for the 18th November paper were available at
10.65% and 10.45%, respectively but soon moved to as high as 11.00% and 10.70%,
respectively, after the OMO result, with trades hard to come by. The surge in term levels
has clearly indicated the desperation of banks in covering their positions over the year
end. Outflows on account of the Prize Bond Scheme have also been responsible for keeping
the market at the higher end of the spectrum at the start and now at the end of the month,
with bidding interest gradually picking up in term call money. With very few maturities
during the next week and the auction just around the comer we expect short term rates to
maintain a firm tone.
|
FEDERAL INVESTMENT BONDS |
1 Year |
12.00 |
11.25 |
12.75% |
2 Year |
12.75 |
12.00 |
12.70% |
3 Year |
13.75 |
12.75 |
13.50% |
4 Year |
14.00 |
13.00 |
13.50% |
5 Year |
14.50 |
13.50 |
14.50% |
10 Year |
15.00 |
14.25 |
16.00% |
| 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 |
11.00 |
05.50 |
16.00 |
1 Week |
11.75 |
05.00 |
12.00 |
1 Month |
10.75 |
06.75 |
09.25 |
3 Month |
10.80 |
08.90 |
11.00 |
6 Month |
10.10 |
09.50 |
11.75 |
1 Year |
12.00 |
11.25 |
N. A. |
| TREASURY
BILL RATES |
| Maturing |
This Week |
1 Wk Ago |
1 Yr Ago |
1 Month |
11.75 |
07.75 |
10.00 |
2 Month |
11.00 |
09.00 |
10.75 |
3 Month |
10.80 |
09.10 |
11.50 |
4 Month |
10.50 |
09.30 |
11.75 |
5 Month |
10.30 |
09.55 |
11.90 |
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