. .



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