. .



Updated on Sep 08, 2001

The short term market remained tight throughout the past week. Inflows and outflows on account of T-Bill and OMO maturities respectively, resulted in a net outflow coupled with the outflow on account of the T-bill auction. The repo discount facility was availed throughout the past week with the shortfall running to a maximum of Rs. 7.30 billion on Friday. The participation in the Treasury Bill auction did not come as a surprise and the State Bank maintained the cut-off yields on three, six and twelve month instruments.

The inter-bank overnight market was glued at the 11.90% level with only slight dips to 11.25% and 11.50% during the day. One and two week levels touched highs of 10.50% and 11.00% but fell back into single digits at the end of the week on Saturday. Banks did cover their positions over the quarter end by picking up one month funds. Borrowers were lucky to cover themselves at 9.25% and even around 9.50% early in the week as rates touched a high of 10.25% amid the tight overnight market, but fell back on the weekend. Three and six month activity was also restricted to certain quarters of the market. Nominal amount activity was conducted at 9.50% in three months repos while six month offers climbed upwards as the auction neared. It was only on the weekend that rates crashed as lenders placed their funds from the 10th i.e. Monday. Three and five month trades were conducted as low as 9.50% and 9.80%, respectively. The State Bank maintained the cut-off yields at 10.23%, 10.51%, 10.88% in the T-bill auction, respectively for the three papers and accepted the target amount of Rs. 11.817 billion. However, the weighted average yield did rise slightly but not significant enough to reflect any changing trend.

The participation and the result in the T-Bill auction, the past week, has once again reflected the sentiment of the authorities. Current yields are here to stay, if not to be lowered any further. The secondary market also reflects that majority of the tenors in the repo market ranging from the one month to the three month tenors are to stay well within single digit levels.

Federal Investment Bond

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

11.00

11.00

08.70%

2 Year

11.50

11.50

09.05%

3 Year

12.00

12.00

09.15%

4 Year

12.25

12.25

09.50%

5 Year

12.50

12.50

09.70%

10 Year

13.00

13.00

10.20%

 


 

AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Sep 05 T-BILL Sep 05 Sep 06
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.11,500 Mln 

Rs.16,767 Mln

Rs.11,817 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

06 Sep

8,407 Mln

T-Bill

20 Sep

4,811 Mln

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

11.90

11.90

10.95

1 Week

10.00

10.50

08.00

1 Month

10.00

09.60

07.50

3 Month

09.90

09.60

07.55

6 Month

10.20

10.15

07.65

1 Year

10.65

10.75

08.70

 


 

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

1 Month

11.00

10.50

08.40

2 Month

10.50

09.70

07.80

3 Month

10.10

09.80

07.75

4 Month

10.35

09.90

07.80

5 Month

10.40

10.20

07.85