FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated July 27, 2002

 

The interbank money market experienced roller coaster ride throughout the week. Overnight trading rates were quoted in the wide bands of 1.50% to 8.00% with major activity ranging between 3.50% to 6.00%. The total outflow of around Rs. 33 billion from the system had no major impact on the rates and no discounting was reported with market remaining almost square through the week mostly on account of hidden inflows. This week the State 

Bank conducted the T-Bill auction and restricted itself below the targeted amount. In term repo market most of the activity was confined to the short term and one and two weeks activity was conducted at 7.50% and 7.00% but with the progression of the week, the market fell and funds changed hands around 5.50% and 5.75% in the respected tenor. Rates in one month saw a fall of around 70 to 75 basis points as early deals were executed around 6.75%. Later rates slid down and borrowing interest was evident at 5.75% against the offers of 6.00%. Three and six months repo rates remained stable for most part of the week but saw a sharp fall towards the end and activity in the respected tenors were seen around 5.65% and 6.00%. Six months call rates saw a hike and some deals in six months was witnessed as high as 6.60%. The ease in term market did cause the secondary market of T-Bills to pick up and buying interest in six month and one year papers were seen at 6.20% and 6.60% respectively. This week the State Bank has conducted its T-Bill auction in which heavy participation of around Rs. 34 billion was seen. The SBP accepted only Rs. 10.70 billion in six months maintaining a cut-off level of 6.43% and stayed below the targeted amount of Rs. 15 billion.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.70

06.70

12.25%

2 Year

07.35

07.10

12.75%

3 Year

07.75

07.75

13.25%

4 Year

08.30

08.25

13.50%

5 Year

08.85

08.80

13.75%

10 Year

09.90

09.95

14.25%

 


 

AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
July 24 T-BILL July 24 July 25
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.15,000 Mln Rs.34,200 Mln  Rs.10,750 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

07.00

06.50

12.90

1 Week

06.25

07.50

12.50

1 Month

06.00

06.75

10.75

3 Month

05.70

05.95

10.95

6 Month

05.85

06.00

11.25

1 Year

06.50

06.55

11.75

 


 

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

1 Month

06.25

07.25

11.50

2 Month

06.00

06.30

11.00

3 Month

05.80

05.95

11.10

4 Month

05.90

06.10

11.15

5 Month

06.00

06.10

11.30