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Updated on July 06, 2002

Rates remained on the high side of the spectrum at 8.95% in the interbank money market on the 30th of June and banks approached SBP for the respite. The fiscal year end did cause the market to experience short term rates at just below the discount rate. The market maintained a downward trend for the rest of the week with rates easing in all tenures.

The fiscal year end saw banks covering themselves at the sky-high of 8.95% due to which discounting of around Rs. 10.70 billion was reported. But rest of the week trades were conducted at levels in between wide band of 1.25% and 5.00%. Heavy activity was conducted in one week repos at lows of 2.00% as banks off loaded their funds at the start of new quarter. The rates comparatively hiked after the OMO in which State Bank mopped up Rs. 12 billion in week at the cut off yield of 4.74%. However, rates continued to fall sharply in the term market with one month repo bids and offers at 4.60% and 5.00% and trades in respected tenor was wiblessed at 4.75%, while three months activity was reported at the lows of 4.90%. Six month activity was hard to come by but quotes were available in the range of 5.40% and 5.80%.

Desperate buying interest was evident in T-bills but outright trades have been scarce as yields in secondary market is continuing to ease off. However no selling of these papers was seen as banks are holding these papers rather than looking for capital gain. State Bank has announced its PIB three and five year auction with pre-auction target of Rs. 5.00 billion which will be auctioned on 18th of July. As the market is expecting downward adjustment in the discount rate, trades of these when issue papers were seen at the premium at Rs. 102.50andRs. 104.75.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.50

06.65

12.75%

2 Year

07.00

07.25

13.00%

3 Year

07.75

07.90

13.25%

4 Year

08.00

08.25

13.35%

5 Year

08.85

09.10

13.50%

10 Year

09.80

10.10

14.50%




AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Jun 26 T-BILL Jun 26 Jun 27
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.11,000 Mln.   Rs.27,585 Mln. Rs.10,850 Mln

  


MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

11 July

3,650 Mln.

T-Bill

25 July

11,705 Mln.




REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

02.00

08.90

12.90

1 Week

03.00

08.25

13.00

1 Month

04.80

05.80

12.50

3 Month

05.20

05.30

11.80

6 Month

05.70

05.75

12.15

1 Year

06.25

06.30

12.60




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

1 Month

06.20

06.00

20.00

2 Month

05.10

05.70

13.50

3 Month

05.30

05.30

12.00

4 Month

05.50

05.45

11.80

5 Month

05.70

05.60

12.05