FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated July 20, 2002

 

Overnight trading was witnessed amid tight conditions with banks approaching SBP for respite. Trading throughout the week were conducted in between levels of 8.00% and 9.00%, but shortfall persisted throughout the week. The past week the Central Bank intervened and conducted two OMOs. Injections for one week were to the tune of Rs. 9.5 billion and Rs. 24 billion that did help in providing relief to the market.

In term repo side one-week trades were seen as high as 8.90% at the start of the week but later rates fell due to the OMO and activity was witnessed at around 8.00% and some at 7.75% as well. Bids and offers for one month was quoted at 7.00% and 7.60%, but near the close of the week rates comparatively eased off and trades were struck between 6.75% and 7.00%. In three months tenor borrowing interest was evident at 5.90% against the offers in the band of 6.10% and 6.25%. This week heavy activity was witnessed for outright T-bills with banks picking up the latest one year paper at yields of 6.80% against the cut-off of 6.99%. SBP maintained the cut off yields at 5.81%, 6.44% and 6.99% for the respective papers. Comments emerging from the Ministry of Finance might have been the main reason that the yields on this paper fell sharply and activity was conducted as low as 6.50%, suggesting chances of the discount rate cut. The three and five year PIB auction was also conducted with the SBP restricting itself to the targeted amount of Rs. 5.0 billion at the cut off prices of Rs. 102.45 and Rs. 104.11.

YIELD PROFILE

FEDERAL INVESTMENT BONDS
.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.70

07.00

12.25%

2 Year

07.10

07.50

12.75%

3 Year

07.75

07.85

13.25%

4 Year

08.25

08.25

13.50%

5 Year

08.80

08.90

13.75%

10 Year

09.95

09.95

14.25%

 

 
AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
July 10 T-BILL July 10 July 11
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.20,000 Mln. Rs.70,685 Mln   Rs.69,285 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

06.50

08.95

12.90

1 Week

07.50

08.75

12.00

1 Month

06.75

07.35

10.00

3 Month

05.95

06.30

10.50

6 Month

06.00

06.25

11.20

1 Year

06.55

06.75

11.75

 

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

1 Month

07.25

07.60

11.00

2 Month

06.30

06.70

10.60

3 Month

05.95

06.20

10.80

4 Month

06.10

06.15

11.10

5 Month

06.10

06.25

11.40