. .



Updated on Mar 09, 2002

Interbank market rates eased off the past without any intervention by the State Bank this week. Short term rates fell to lows of 1.50%. Volatility persisted with activity mostly being witnessed in the one and two week tenor. Term rates did ease but marginally as the State Bank maintained the cut-off yields in the Treasury Bill auction which did not come as much of a surprise for the players.

Overnight activity in the initial parts of the week was conducted at the sky high level of 8.90% but levels fell off. Inflows were reported on account of export refinance funds which all banks received. One and two week activity was conducted at 7.50% and 7.00% in the respective tenors but by the end of the week, the market had also witnessed lows of 3.50% and 4.50% as well. However rates in the one month tenor after initially easing off to 5.25% stabilized and soon bidders were present at the lowest dealt level. Activity in the term market was nominal as banks preferred to wait for the auction result in order to take position in the three and six month tenors. The authorities managed to attract the target amount with ease while maintaining the levels. Three, six and twelve month papers cut-off yields stood at 5.81%, 6.48% and 7.00% respectively with a total amount of Rs. 11.70 billion being accepted.

The T-Bill auction continues to reflect the sentiment that we have been forecasting in our weekly's; chances of a hike in interest rates seem unlikely. However prior to this auction a slight upsurge in the Rupee parity did cause some concern but the auction result soon dispelled any rumours of any adjustment in cut-off yields.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

07.00

07.25

12.25%

2 Year

07.75

08.25

12.75%

3 Year

08.50

08.75

13.00%

4 Year

08.50

08.75

13.00%

5 Year

09.50

09.65

13.25%

10 Year

10.75

10.60

13.50%




 
AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Mar 06  T-BILL Mar 06 Mar 07
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.6,890 Mln. Rs.17,400 Mln. Rs.11,700 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

02.25

08.60

12.90

1 Week

03.75

08.00

12.40

1 Month

05.30

06.80

11.40

3 Month

05.65

06.35

11.25

6 Month

06.25

06.45

11.50

1 Year

06.75

06.80

12.25




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

1 Month

05.50

07.00

12.40

2 Month

05.50

06.50

11.35

3 Month

05.65

06.35

11.30

4 Month

05.95

06.35

11.40

5 Month

06.25

06.40

11.50