Pakistan Money Market Review
Updated on Dec 04,
2000
The overnight quote throughout the week remained
unaltered, which was hardly surprising since the net shortage in the
system had virtually no chance of alleviating itself. The deduction of
Zakat only added to the woes of institutions running short.
The highlight of the week was the sudden burst in
borrowing interest in tenors ranging from 1 month to 2 months, towards
the tailend of the week. The 1 month quote which was languishing in the
band of 11.75% to 12.25% spiked to 12.50%, in a single trading session.
While bids for 2 month money shot up to 12.40%, as well. This rise in
borrowing interest can only be attributed to the announcement of the
standby arrangement with the IMF, which hinted towards tight monetary
conditions for the time being. On the weekend, the 1 month quote had
risen further to 12.95%, which clearly points towards a tight year end.
On another front, the SBP finally announced the
launch of the Pakistan Investment Bonds (PlBs), with the auction for the
instruments scheduled for the 12th of December. Although, quotes for
these bonds in the grey market were supposed start from the 1st of
December, no single appointed primary dealer (PD) was active in doing
so. It is obvious that initial demand for these bonds are likely to be
corporate fueled and quoting should initiate as the auction draws
closer.
| YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
12.25 |
12.25 |
11.50% |
|
2 Year |
12.80 |
13.011 |
12.25% |
|
3 Year |
13.50 |
13.50 |
13.00% |
|
4 Yeal |
13.75 |
13.75 |
13.25% |
|
5 Y ear |
14.00 |
14.00 |
13.75% |
|
10 Year |
14.75 |
14.75 |
14.50% |
| AUCTIONS |
| BID
DATE |
INSTRUMENT |
RESULT |
SETTLEMENT |
| Nov
29 |
T-BILL |
Nov
29 |
Nov
30 |
| TARGET AMOUNT |
BID
AMOUNT |
ACCEPTED AMOUNT |
| Rs.
2.708 Bln. |
Rs. 2 Bln. |
Rs.
1.049 Bln. |
|
|
| MATURITIES |
INSTRUMENT |
DATE |
AMOUNT |
|
T-Bill |
14 Dec |
500
Mlh |
|
T-Bill |
28 Dec |
7,622
Mln |
|
|
|
REPO RATES |
|
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
Overnight |
12.95 |
12.95 |
10.50 |
|
1 Week |
12.95 |
12.95 |
10.50 |
|
1 Month |
12.95 |
12.50 |
10.80 |
|
3 Month |
12.00 |
12.05 |
10.60 |
|
6 Month |
11.70 |
11.95 |
10.00 |
|
1 Year |
11.90 |
12.05 |
N. A. |
|
|
|
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
13.95 |
13.50 |
11.80 |
|
2 Month |
12.85 |
12.60 |
11.00 |
|
3 Month |
12.15 |
12.25 |
10.70 |
|
4 Month |
12.00 |
12.15 |
10.45 |
|
5 Month |
11.70 |
12.00 |
10.15 |
|
|
