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FINEX WEEK

  1. The KASB review
  2. Finex week

Updated on Mar 06, 2000

For most part of the past week overnight interbank rates remained in double digits and high single digits. Trades were witnessed between 10.50% and 10.90%, but crashed to the other end of the spectrum on Friday, the last day of the reporting week. Rates closed at 0.75% but not before trades had been conducted at 6.00%, 4.00% and 2.00%. Healthy reserve averaging in addition to the injection of Rs. 1.80 billion for one week via the two way OMO on Thursday were the factors that contributed towards this bearish spell. But the market turned better for lenders on Saturday as they took into effect the imminent outflows on Monday and Tuesday next and the close was up at 9.00%.

The term market during the past week remained generally thin. Yet again the concentration was in the one month tenor with nominal amounts trading in the band of 7.00% and 7.25%. The OMO injection did cause these levels to soften but levels rose back on Saturday with bids and offers at 7.20% and 7.75%, respectively. Three month borrowers continued to remain unmoved from levels of 7.10% while offers at 7.45%. Interest was evident in five and six month tenors and trades were reported at around the 7.50% level but amounts remained thin. Meanwhile, there was considerable demand for one year to maturity FIBS, which has continued to increase in the wake of a declining yield curve. Buying interest cropped up during the past week with bids for these papers being quoted in the band of 8.75% and 9.00%.

Outflows on account of OMO injections made in February are due on the 6th and the 7th of March, coupled with the Rs. 12.60 billion maturity on the 9th of March. An SBP intervention cannot be ruled out for early next week as rates also remained on a firm note at close on Saturday. Key players are apprehensive about the SBP being hesitant to commit towards an injection in 1 month and cross the quarter end. It would be interesting to see whether the SBP attempts to inject money over the quarter end and stick to its commitment towards keeping rates easy.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

1 Year

08.75

08.25

11.75%

2 Year

09.25

08.75

14.00%

3 Year

09.75

09.50

12.50%

4 Year

10.00

09.75

12.75%

5 Year

10.50

10.00

13.25%

10 Year

10.75

10.50

14.00%

 


 

AUCTIONS
Bid Date Instrument Result Settlement
Feb 23 T-BILL Feb 23 Feb 24
Target Amount Bid
Amount
Accepted Amount
Rs. 3.5 Bln.

Rs. 13.877 Bln.

Rs. 2.75 Bln.

 


 

MATURITIES

T-Bill

09 Mar

12,600 Mln

T-Bill

24 Mar

4,100 Mln

T-Bill

25 Mar

125 Mln

 


 

REPO RATES

Overnight

08.00

09.75

00.25

1 Week

07.25

09.00

01.25

1 Month

07.15

07.25

04.00

3 Month

07.20

07.35

07.25

6 Month

07.45

07.55

10.25

I Year

08.25

08.25

N. A.

 


 

TREASURY BILL RATES

1 Month

08.25

08.00

07.00

2 Month

07.75

07.10

07.75

3 Month

07.60

07.15

08.75

4 Month

07.55

07.25

09.75

5 Month 07.60 07.35 10.25