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Updated on June 15, 2002

Past week interbank market rates eased off with an intervention by the State Bank. Week started with short term rates at the higher side of the spectrum, but no discounting was reported even with rates touching 8.90%. As there was an heavy outflow on account of OMO maturity the State Bank continued its policy of matching the maturity by injecting Rs. 16.50 billion in the system in one and two weeks at the cut off yield of 6.51% and 6.58%. Rates eased off in short term market with overnight rates falling to 0.75% while term rates remained firm, as the banks were quite inclined on maintaining levels close to the Treasury Bills yields.

Overnight activity in the initial parts of the week was conducted at the sky high levels and the trading was confined in the band of 8.50% and 8.90%, but later levels fell off after the injection by the SBP and there was some hidden inflows on account of Saving Certificates which some nationalize banks received. One & two week activity was conducted at 6.50% and 7.00% in the respected tenors but rest of the week deals were stuck around 3.50% and 4.00%, except the last day where rates bounced back and activity in respected terms were seen at 5.00% and 5.75%. The most active term was one month, as most of the borrowers were keen to borrow funds in one month as its maturity is falling after 30th June. Early deals in the respected tenor were witnessed in the band of 6.40% to 6.50%. Later on, one month tenor after easing off to 5.25% stabilized and soon bidders were present at the lowest levels. Activity in the term market was nominal and no major deals were executed however, some deals in three month was witnessed around 5.75% and in six months funds change hands at 6.20%.

This week in the T-Bill auction authorities hardly managed to attract targeted amount. SBP received total bids of Rs. 6.80 billion against the pre-auction target of Rs. 7.00 billion. SBP rejected bids in three months while six and twelve-month papers cut-off yields stood at 6.43% and 6.99% respectively with a total amount of Rs. 4.30 billion being accepted.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

07.00

07.35

13.00%

2 Year

08.10

08.45

13.50%

3 Year

08.75

08.85

14.00%

4 Year

09.00

09.00

14.25%

5 Year

09.75

09.85

14.50%

10 Year

10.85

10.85

15.00%




AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Jun 12 T-BILL Jun 12 Jun 13
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.7,000 Mln. Rs.6,850 Mln  Rs.4,300 Mln.

  


MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

13 Jun

7,850 Mln.
T-Bill 27 Jun 9,350 Mln



REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

03.00

07.50

10.50

1 Week

04.25

06.75

11.25

1 Month

05.25

06.65

12.75

3 Month

05.85

06.35

12.15

6 Month

06.25

06.60

12.40

1 Year

06.85

07.00

12.60




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

1 Month

05.75

07.00

13.75

2 Month

05.70

06.80

12.40

3 Month

05.85

06.35

12.25

4 Month

06.05

06.40

12.35

S Month

06.15

06.50

12.30