. .



Updated on Sep 01, 2001

This week the overnight rates opened at the higher side of the yield curve and major activity was placed just below the discounting level of 11.90% throughout the week. The SBP discount window witnessed a roller coaster ride in terms of amount despite a twice OMO injection by the State Bank during the week. The total injection of Rs 10.60 billion failed to curtail the discounting and it is to be seen that what transpired the Central Bank to bring down the rates in days to come.

In term repo market, trades were witnessed in one, two and three months tenor, as strong rumour about a further cut in the discount rate in the days to come. Borrowers restricted themselves to short to medium term tenors one, two and three months. Activity in these tenors were witnessed at around 9.00%. 9.25% and 9.35%. borrowers were keen to borrow in two months and heavy activity took place. Banks avail the opportunity to cover themselves over the quarter. The SBP conducted two OMOs and mopped up total amount of Rs 10.60 billion from the system. In the first OMO, the State Bank received bids of approximately Rs 7 billion to 8 billion but accepted only a meager amount of Rs 3.40 billion at the rate of 9.24%. Similarly in the second OMO of the week, the State Bank accepted Rs 7 20 billion at 9.15% while bid stood at around Rs 12 billion.

The withdrawal of nostro limits is another step towards meeting the conditionalities of the IMF. Now there seems to be little obstacle in release of $133 million tranche to Pakistan. this tranche is due in the last week of September and government is now in a comfortable position to cut the rates and on top of that stabilize the rupee against the US dollar.

Federal Investment Bond

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

11.00

11.00

08.75%

2 Year

11.50

11.50

09.00%

3 Year

12.00

12.00

09.40%

4 Year

12.25

12.25

09.50%

5 Year

12.50

12.50

09.60%

10 Year

13.00

13.00

09.75%

 


 

AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Aug 22 T-BILL Aug 22 Aug 23
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.5,600 Mln.  

Rs.32,354 Mln.

Rs.17,050 Mln.

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

09 Aug.

7,352 Mln

T-Bill

23 Aug.

5,652 Mln

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

11.90

11.90

10.95

week

10.50

10.25

10.35

1 Month

09.60

09.25

08.25

3 Month

09.60

09.50

07.65

6 Month

10.15

10.00

07.75

1 Year

10.75

10.50

08.75

 


 

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

1 Month

10.50

10.00

09.25

2 Month

09.70

09.60

08.20

3 Month

09.80

09.90

07.85

4 Month

09.90

10.10

07.85

5 Month

10.20

10.20

07.90