. .



Updated on Mar 30, 2002

The interbank money market experienced roller coaster ride throughout the week. In overnight trading rates were quoted in the wide band of 3.50% to 7.00% with major activity ranging in 3.00% to 5.00% level. Market turn around due to the PIB auction in which SBP mopped up around Rs. 7.60 billion from the system, and due to this outflow overnight rates move as high as 7.00% but later fell to 4.00% and market close liquid.

This week in term market one and two weeks activity was conducted at 6.00% and 6.25% in the respected tenors but as the week progressed the market has witnessed fall of around 50 to 60 basis points in the respected tenors. Rates in one month, which was the most active one changed hands at 6.25% at the start of the week but towards the end, rates in one month slid and activity took place as low as 5.40%. Three and six months rates remained at the stable levels and no major change was seen in these tenors. The parity in repo and call rates was increased after the news that the SBP will not rollover the US$ swap (FE 31), due to which three and six months call rates hiked and activity in these was witnessed as high as 6.60% and 7.00%. This week SBP has conducted its PIB three and five years auction in which heavy participation of around Rs. 16.00 billion was witnessed against the pre-auction target of Rs. 8.00 billion. State Bank accepted only Rs. 7.60 billion at the cut-off price of Rs. 101.55 and Rs. 101.95 in three and five years respectively.

No major change in the market scenario is expected in the coming week as, SBP has already given a clear indication that it will maintain the cutoff levels of T-bills and the market is of the view that rates will remain at the prevailing levels. As the T-bills auction is due in the coming week we expect major participation will be at the previous levels.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

07.10

07.00

12.10%

2 Year

07.75

07.75

12.50%

3 Year

08.65

08.50

12.75%

4 Year

08.65

08.50

12.75%

5 Year

09.65

09.50

13.25%

10 Year

10.75

10.75

13.50%




AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Mar 20  T-BILL Mar 20 Mar 21
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.6,000 Mln Rs.29,790 Mln Rs.26,490 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

08.25

03.25

01.75

1 Week

06.75

05.50

11.25

1 Month

06.00

05.75

10.75

3 Month

05.90

05.80

11.00

6 Month

06.35

06.25

11.40

1 Year

06.75

06.75

12.10




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

1 Month

06.40

05.90

11.75

2 Month

06.20

05.85

10.90

3 Month

05.90

05.80

10.90

4 Month

06.10

06.00

11.10

5 Month

06.35

06.25

11.30