Pakistan Money Market Review
Updated on July
21,
2001
The inevitable happened on Thursday, 19th of July
when the discount rate was readjusted downward at 13.00% by the SBP.
This cut in the discount rate was on the cards after the drop in the
yield for T-bills. After the safe crossing of the fiscal year-end, the
SBP was under no compulsion for the quarter-end NDA and NFA targets.
This discount rate cut, coupled with an OMO and a 3-year and 5-year PIB
auction for the week, kept the market fairly active.
Surplus liquidity in the interbank money market kept
rates on the lower side of the yield curve with activity ranging in
single digits for the overnight to two-week tenors for most of the week.
Overnight rates remained unchanged from the previous week till the last
day of the current week where funds changed hands in the narrow band of
1.00% and 3.00%. Rates hiked only after the SBP mopped Rs. 17.6 billion
from the system in its fortnightly OMO on Thursday. This, coupled with
an outflow of Rs. 2.9 billion for the PIB in an auction the very next
day, saw rates touch their higher levels and numerous borrowers squared
their positions from the SBP discount window. The SBP accepted amounts
in the OMO for one, two and four weeks at 9.00%, 9.24% and 9.50%,
respectively. PIBs worth Rs.2.9 billion were accepted at a premium price
of up to Rs. 100.02.
It seems the SBP may concentrate to lower yields on
T-bills so that the export finance for the October - December quarter
will be at lower rates. With the US$133 million IMF tranche on its way
in the present quarter, the SBP is in a position to guide the market to
its desired levels.
|
Federal Investment Bond |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
12.25 |
12.65 |
07.75% |
|
2 Year |
12.75 |
13.00 |
08.50% |
|
3 Year |
13.25 |
13.40 |
09.00% |
|
4 Year |
13.50 |
13.60 |
09.25% |
|
5 Year |
14.00 |
13.90 |
09.50% |
|
10 Year |
14.50 |
14.50 |
10.00% |
| AUCTIONS |
| BID
DATE |
INSTRUMENT |
RESULT |
SETTLEMENT |
| July
11 |
T-BILL |
July
11 |
July
12 |
| TARGET AMOUNT |
BID AMOUNT |
ACCEPTED AMOUNT |
| Rs.1,000
Mln |
Rs.25,500
Mln |
Rs.6,500
Mln |
|
|
| MATURITIES |
INSTRUMENT |
DATE |
AMOUNT |
|
T-Bill |
26 July |
2,669
Mln |
|
|
|
REPO RATES |
|
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
Overnight |
12.90 |
04.25 |
10.90 |
|
1 Week |
12.25 |
04.25 |
08.50 |
|
1 Month |
10.50 |
08.70 |
07.35 |
|
3 Month |
10.55 |
10.70 |
06.90 |
|
6 Month |
11.30 |
11.40 |
7.05 |
|
1 Year |
11.90 |
12.25 |
N.A |
|
|
|
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
11.50 |
09.70 |
08.10 |
|
2 Month |
l0.80 |
10.25 |
07.25 |
|
3 Month |
10.75 |
10.80 |
07.20 |
|
4 Month |
10.90 |
11.10 |
07.20 |
|
5 Month |
11.40 |
11.40 |
07.20 |
|
|
