. .



Updated on Oct 13, 2001

There was ease in the interbank money market with short-term rates falling into single digits. Term rates remained firm with slight upward bias on the part of the bidders. The shortage in the market till the injection on Wednesday was gradually wiped out and banks did not approach SBP for respite.

Overnight and one-week rates stayed in double digits during the early part of the week. Market players had the SBP injection of funds at 9.50% during the previous week fresh in their minds. Later, on Wednesday, an OMO injection of Rs. 6.75 billion at 9.55% for one week against an outflow of Rs. 10.90 billion caused temporary panic. Overnight rates having fallen to a low of around 7.00% rose into double digits again towards the close of the day with a nominal discounting amount of Rs. 576 million. One-month rates fell to 9.25% before offers firmed back to 9.75% and 9.90% levels. Three-month bids that had fallen to as low as 9.50% soon rose back and touched 9.90% with offers remaining at 10.00%. Secondary market trades for the latest T-Bill were also conducted at around 10.30%, reflecting that the coming T-bill auction could still make some players in the banking sector quote bids slightly below previous cut-offs.

According to unconfirmed reports discussions between the authorities and the market players were reported during the week with regards to the liquidity status in the market. SBP's concern does not come as a surprise keeping in mind the continuous injections in the market since early September had not been making the required impact.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

11.00

11.00

12.75%

2 Year

11.50

11.50

13.25%

3 Year

12.00

12.50

14.00%

4 Year

12.50

12.75

14.50%

5 Year

12.75

13.00

14.75%

10 Year

13.50

13.50

15.25%

.


 
AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Oct 04 T-BILL Oct 04 Oct 05
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs. 5,520 Mln Rs. 19,700 Mln Rs. 8,000 Mln



MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

04 Oct 

3,960 Mln

T-Bill

18 Oct

3,600 Mln




REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

08.50

11.90-

12.95

1 Week

09.25

10.00

12.95

1 Month

09.50

09.60

12.85

3 Month

09.90

09.80

12.40

6 Month

10.25

10.20

12.15

1 Year

10.60

10.55

13.00




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

1 Month

10.50

10.60

13.85

2 Month

09.90

09.80

13.70

3 Month

10.00

09.90

13.00

4 Month

10.10

10.10

13.00

5 Month

10.25

10.20

12.65