. .



Updated on Mar 02, 2002

Contrary to the last week closing, the interbank money market open at the higher side of yield curve and overnight funds from the first day of the week was traded at the top levels. As there was total outflow of around Rs.8.50 billion from the system and PIB auction was also due this week, SBP conducted its two way OMO to stabilize the market. The week was significant in a way that SBP conducted three OMO's and took the market by surprise by injecting only meager amount of Rs.1 billion in 4 weeks at the cutoff yield of 6.50% and mopped up around Rs.5.20 billion in 2 weeks at 5.75%. In its second OMO, the SBP only injected Rs.1.77 billion, Rs. 1.5 billion in 2 weeks at the cutoff yield of 6.25% and Rs 270 million in 4 weeks at 6.50%. Banks approached SBP window for discounting varying from Rs.700 million to Rs. 10.3 billion. SBP has given clear indication that it is going to maintain its lending rates and has revised the same practice in its third OMO by injecting only Rs.2.8 billion at the previous levels in 2 and 4 weeks.

Term rates came under pressure due to the trend in short term market and specially after the PIB auction, term rates further hiked with offers available for three months as high as 6.50% and for six months at 6.75%. One month repo bids and offers initially quoted at 6.00% and 6.25% but near the end of the week the rates touched the levels of 6.60% and 7.00%. Borrowing was seen in 4 months as it gives an opportunity to cross the quarter and market players cover their positions at 6.40%. Market for call transaction also saw a hike and activity in three and six month call was seen at 6.90% and 7.40%. A PIB auction was also conducted by SBP during the week in which heavy participation of Rs. 26 billion was noted against the target of Rs.8 billion while SBP accepted only Rs.7.6 billion at the price of Rs. 103.03. As the market is experiencing a liquidity crunch and T-Bill auction is also due, the market is of the view that the State Bank will conduct its OMO to stabilize the market.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

07.25

07.00

12.25%

2 Year

08.25

07.75

12.75%

3 Year

08.75

08.50

13.00%

4 Year

08.75

08.50

13.00%

5 Year

09.65

09.50

13.25%

10 Year

10.60

10.75

13.50%



 
AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Feb 20 T-BILL Feb 20 Feb 21
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.11,030 Mln Rs.27,150 Mln Rs.13,600 Mln


 
MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

07 Mar

3,755 Mln

T-Bill

21 Mar

2,300 Mln


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

08.60

03.25

04.00

1 Week

08.00

04.00

07.25

1 Month

06.80

05.25

11.00

3 Month

06.35

05.50

11.25

6 Month

06.45

06.15

11.45

1 Year

06.40

06.75

12.25



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

1 Month

07.00

05.25

12.00

2 Month

06.50

05.25

11.35

3 Month

06.35

05.50

11.10

4 Month

06.35

05.60

11.20

5 Month

06.40

06.05

11.30