. .



Updated on Sep 15, 2001

The interbank money market witnessed short term rates falling and touching the lower end of the spectrum. The State Bank of Pakistan continued its policy of timely injections, with simultaneous outflows on account of OMO maturities. However, term rates, specially the three and six month levels, moved towards the higher side as banks took the opportunity to not only cover this quarter end but also the year end i.e. December 31 st 2001.

Overnights traded at 11.50% and 11.90% early in the week, but levels gradually eased off as the week progressed. Outflow of Rs. 9.30 billion falling on Thursday was matched with an inflow as SBP injected Rs. 10.50 billion. The minimum rate at which SBP lent for one week was 9.45%. This inflow caused overnight rates to ease significantly with trades being witnessed at levels as low as 5.00% on Friday and 2.00% on Saturday, clearly reflectimg the excess liquidity in the system. Term levels were firm with one month rates only moving by about 25-30 basis pomts and bids and offers being quoted in between 9.25% and 9.75%. Six month repo offers that were available at around 10.20% early in the week later rose. Even though the three and six month average KIBOR remamed in between 9.65%-10.15% and 10.00%-10.50%, respectively, covering for the year end was evident. Four month activity was witnessed as high as 10.30% while trades were also reported in forward from the end of September.

The changing environment, after the crisis in the US, seems to have a significant bearing on our stock market. We feel that the money market did also reflect a slight change. Any negative development in the country could result in sudden Rupee outflows on account of people panickmg as witnessed in wartime conditions. This could be one of the reasons that can be assigned for the banks quoting higher levels than usual in the OMO. Furthermore, rising prices of crude oil and expectations of fall in demand of our exports can only have a negative bearing on the Rupee, thus resulting in SBP keeping interest rates firm.

Federal Investment Bond

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

11.00

11.00

08.50%

2 Year

11.50

11.50

08.75%

3 Year

12.00

12.00

09.25%

4 Year

12.25

12.25

09.50%

5 Year

12.50

12.50

09.75%

10 Year

13.00

13.00

10.50%

 


 

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

01.75

11.90

00.75

1 Week

07.00

10.00

03.75

1 Month

09.45

10.00

05.25

3 Month

09.70

09.90

07.10

6 Month

09.95

10.20

07.40

1 Year

10.55

10.65

08.50

 


 

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

1 Month

10.45

11.00

06.25

2 Month

09.80

10.50

06.80

3 Month

09.90

10.10

07.25

4 Month

10.00

10.35

07.30

5 Month

10.10

10.40

07.40