. .



Updated on Mar 16, 2002

The market was flooded with liquidity this week due to which the overnight funds changed hand mostly around 1.00%. The term rates remained stable throughout the week even though the short term market was quite liquid.

Despite a heavy outflow of Rs 13.30 billion from the system, overnight trading was restricted between the narrow band of 0.75% and 1.25% as inflows were reported on account of export finance funds and maturating NSC funds. Volatility was noted on Tuesday due to the outflow of Rs 11.30 billion the same day. Overnight rates moved to a high of 6.00% but later fell to 2.50%. One and two week rates were quoted in the band of 3.50% to 4.00% and 4.50% to 5.00% at the start of the week but towards the end activity was seen at 3.00% and 4.00%, respectively. One month rates saw sharp fall with trades being struck as high as 5.60% and as low as 4.75%. Three-month rates saw a fall of around 45 basis points during the week compared to the starting offers of 5.90%. The State Bank announced a target amount of Rs 8.00 billion for the three and five year PIBs to be auctioned on the 28th March bearing a coupon of 9.00% and 10.00%, respectively. Being an attractive bond, trades for this 'when-issued-papers' were reported at premium prices of Rs 102.00 and Rs 102.50 within minutes of the announcement of the auction.

We feel that the term rates will remain stable in the coming week with the T-Bill auction expected during the week. Participation is expected to be at aggressive levels and concentration is expected in the six and twelve month papers.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.90

07.00

11.90%

2 Year

07.75

07.75

12.40%

3 Year

08.50

08.50

12.75%

4 Year

08.50

08.50

12.75%

5 Year

09.50

09.50

13.00%

10 Year

10.75

10.75

13.25%




 
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

02.75

02.25

02.50

1 Week

03.00

03.75

05.00

1 Month

04.80

05.30

11.00

3 Month

05.45

05.65

10.90

6 Month

06.15

06.25

11.15

1 Year

06.75

06.75

11.90




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

1 Month

05.10

05.50

12.00

2 Month

05.35

05.50

11.00

3 Month

05.60

05.65

11.10

4 Month

05.90

05.95

11.15

5 Month

06.15

06.25

11.20