. .



Updated on May 04, 2002

During the past week the interbank money market went through a volatile phase. Lows of 0.75% and highs of 8.50% were witnessed in the overnight market while term rates took a hike after the State Bank accepted a heavy amount of Rs 33.70 billion in the T-Bill auction of the week. Excess liquidity in the system kept the overnight rates in the band of 0.75% to 1.50% at the start of the week, with one-week activity recorded at the rock bottom level of 2.00%. Significant interest was evident in two-month tenor as the maturity was crossing the financial year-end, with bids and offer for respective tenor being quoted in the band of 5.25% and 5.50%. Activity was seen at 5.25% initially but later on rates hiked and offers for two months was quoted at 6.00%.

No major activity was witnessed in three and six month tenor and borrowing interest was evident at the levels of 5.50% and 6.00% against the offers at 5.75% and 6.30%. This week, aggressive trading in shorter tenor was seen as deals in one and two weeks were struck as low as 2.00% and 3.50%. Heavy activity in one month was also witnessed and funds changed hands around 4.75%. The auction attracted a total amount of around Rs 44 billion with aggressive participation of Rs 29 billion in the sixmonth paper. SBP decreased the cut-off yields marginally for the six-month and one-year papers. The Central Bank accepted total amount of Rs 33.70 billion, against the target of Rs 22.00 billion i.e. Rs 3.30 billion in three months at the cut-off yield of 5.8124%, Rs 22.80 billion in six months at the cut- offyield of 6.4373% and in one year it accepted Rs 7.60 billion at 6.9976%.

Due to the heavy outflow of around Rs. 33.7 billion from the system, market is of the view that rates in interbank will remain at the higher side of the yield curve and no major change in market scenario is expected in the coming week.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

07.10

07.00

12.25%

2 Year

07.70

08.00

12.50%

3 Year

08.45

08.40

12.75%

4 Year

08.45

08.40

12.75%

5 Year

09.50

09.40

13.00%

10 Year

10.60

10.65

13.50%




AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
May 02 T-BILL May 02 May 03
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.22,000 Mln. Rs.44,150 Mln. Rs.33,750 Mln.

  


MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

02 May

22,000 Mln.
T-Bill 16 May 5,200 Mln.

T-Bill

30 May

14,407 Mln.



REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

07.75

01.00

12.90

1 Week

06.75

02.00

09.00

1 Month

05.75

04.88

10.00

3 Month

05.80

05.58

11.00

6 Month

06.25

06.10

11.25

1 Year

06.70

06.70

11.75




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

1 Month

06.25

05.85

11.00

2 Month

06.10

05.50

11.30

3 Month

05.80

05.65

11.00

4 Month

06.15

05.90

11.10

5 Month

06.25

06.10

11.25