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 |
|
