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Pakistan Money Market Review

Updated on Aug 21, 2000

The interbank market maintained an upward trend throughout the past week. However occasional dips were witnessed with a general feeling of a hike in repo rates. Majority of trades were conducted in between the band of 2.00% and 8.00%. After the mopping up of Rs. 4.10 billion by way of the OMO, on Thursday, overnight rates did rise and touch the 10.00% level, but to be seen falling back to around 5.00% at the end of the day. It was only on Saturday that the overnight market picked up and closed at 8.00% after initially trading in between 4.50% and 6.00%.

The term market already maintaining a firm trend, after the Special OMO on the 11th hovered around similar levels. Uncertainty on the liquidity status in the market coupled with the OMO this week, caused one month rates to move between a wide band. Trades were witnessed at 6.75% early in the week, but later fell back after overnight rates fell to 2.00%. Moderate activity was also reported as low as 6.00%. Borrowers were lucky at covering themselves at these levels, as offers soon moved to 7.00% and later were available at 7.25% in forward dates. The three month market remained well between 7.00% and 7.25%, with nominal activity conducted at all levels between this narrow band. Six month failed to have been affected in any significant manner and offers after touching 7.50% only fell back to around 7.35%, a level at which nominal amounts changed hands. The two way OMO this week managed to mop up Rs. 4.10 billion by way of the outright sale of T-Bills at 7.40% (the cut-off in the special OMO being 7.38%).

The term repo market has already reflected on the sentiment of the market players. The State Bank continues to maintain rates at the current levels, but it does not seem farfetched that rates reflect a bullish sentiment. Banks continue to be cautious in this market where a hike in levels can be triggered at any time, specially after the value of the Pak. Rupee continues to fall.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

08.25

08.15

09.65%

2 Year

08.50

08.50

12.00%

3 Year

09.00

09.00

12.50%

4 Year

09.00

09.00

12.75%

5 Year

09.25

09.25

13.50%

10 Year

09.75

09.75

14.25%

 


 

AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Aug 09 T-BILL Aug 09  Aug 10
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs. 15,659Bln.

Rs.9,325 Bln.

Rs.750 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

10 Aug

2,350 Mln

T-Bill

11 Aug

13,309Mln

T-Bill

24 Aug

1,600 Mln

T-Bill

26 Aug

6,360 Mln

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

07.50

01.25

04.00

1 Week

06.50

05.25

07.00

1 Month

07.00

06.50

06.00

3 Month

07.20

07.20

06.30

6 Month

07.40

07.35

07.25

1 Year

07.75

07.65

N. A.

 


 

TREASURY BILL RATES
MATURING THIS WEEK 1 WEEK AGO 1 YEAR AGO

1 Month

08.00

07.50

07.20

2 Month

07.35

07.20

06.80

3 Month

07.25

07.35

06.80

4 Month

07.35

07.40

07.10

5 Month

07.40

07.40

07.35