Pakistan Money Market Review
Updated on Jul 24, 2000
The interbank market maintained a
soft tone in the early parts of the past week. Overnight trading was in between 4.00% and
6.00% while one week levels at around 7.50% reflecting a slight bullish sentiment keeping
the OMO during the week. The outright sale of T-Bills caused an outflow of Rs. 5.70
billion in the OMO did cause levels to rise sharply and cross into double digits. However
it was the unexpected trend witnessed on Friday that saw rates taking a sharp twist.
Trading initially at 6.00% and later at levels of 10.00% and 10.90% and finally a
discounting of approximately Rs. 1.5 billion that took dealers by surprise. Rates reversed
on Saturday with rates falling sharply towards the close of dealing hours. Trades were
initially conducted at 10.25% and 10.50% but soon the market saw a fury of lending
pressure causing bids to ease to 8.00% and 9.00%. Heavy amounts were traded at close to
these levels with the day finally closing long with trades at 4.50% and 5.00%.
The term market also went through
the volatile phase of short term rates moving between wide bands. One month activity was
reported at 7.00% on Monday and Tuesday but later offers were seen falling sharply to
6.50%. During the process amounts changed hands mostly through system generated trades at
6.60% and 6.75%. The two way OMO only saw SBP picking up Rs. 5.70 billion by outright
selling T-Bills at 7.19%. However, contrary to expectation, banks had also participated on
the borrowing side in the two week tenor. One month rates rose back sharply and bids and
offers were quoted at 7.00% and 7.50% but later offers fell back to 7.25% which were
available in forward dates. Significant interest was evident in the three and six month
tenors with offers in the two tenors 7.00% and 7.15% prior to the OMO. Three month trades
were witnessed at around 7.00% and later at close to 7.20% while nominal amounts also
changed hands at around 7.20% in the five and six month tenors.
Chances of a tighter market, after the market went short on Friday,
have some what been ruled out. Offers have fallen sharply in the term market as general
borrowing in term market has also been lacking. Participation in the scheduled T-bill
auction next week will certainly be well within the ongoing band with the cut-off levels
also being maintained without any major emphasis on the target amount.
| YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
1 Year |
07.75 |
07.75 |
09 75% |
2 Year |
08.50 |
08.50 |
09.75% |
3 Year |
09.00 |
09.00 |
13.50% |
4 Year |
09.25 |
09.25 |
13.75% |
5 Year |
09.50 |
09.50 |
14.00% |
10 Year |
10.00 |
10.00 |
14.50% |
| AUCTIONS |
| BID
DATE |
INSTRUMENT |
RESULT |
SETTLEMENT |
| July 12 |
T-BILL |
July
12 |
July 13 |
| TARGET AMOUNT |
BID
AMOUNT |
ACCEPTED AMOUNT |
| Rs. 2,926Bln. |
Rs.17,120.305
Bln. |
Rs. 9,050
Bln. |
| MATURITIES |
INSTRUMENT |
DATE |
AMOUNT |
T-Bill |
07 Jul |
2,276 Mln |
T-Bill |
13 Jul |
600 Mln |
T-Bill |
21 Jul |
5,750 Mln |
T-Bill |
27 Jul |
5,000 Mln |
REPO RATES |
|
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
Overnight |
05.00 |
06.50 |
12.95 |
1 Week |
07.50 |
07.35 |
12.50 |
1 Month |
06.90 |
07.10 |
08.00 |
3 Month |
07.00 |
07.00 |
07.45 |
6 Month |
07.10 |
07.05 |
07.90 |
1 Year |
07.45 |
07.50 |
N. A. |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
1 Month |
07.50 |
07.80 |
08.75 |
2 Month |
07.20 |
07.40 |
08.25 |
3 Month |
07.15 |
07.25 |
07.75 |
4 Month |
07.15 |
07.25 |
08.25 |
5 Month |
07.20 |
07.25 |
08.50 |
|
