FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 03, 2002

 

Interbank money market trading lacked luster the past week. Volatility did persist but banks generally preferred to trade in the short term market. Activity was concentrated in the one and two week tenors while nominal activity was witnessed in outright T-Bill trades. The long term PIB market was also quiet throughout the past week with no major trades being reported.

The liquidity status in the market continued to confuse the traders and volatility persisted in the overnight market. Rates moved between wide bands of 4.00% and 8.90%. However it was on Friday that the market closed short and nominal discounting of Rs. 420 million was reported after rates closed at the 8.90% level. Heavy activity was witnessed in the one week tenor as rates fell of from 7.00% at the start of the week. Trades were reported at lows of 5.75% and 6.00% but closed back at 6.50% and 6.75% at the end of the week. The term market was quiet with bids available at levels of 5.75%, 5.80% and 6.10% in the one, three and six month tenors respectively. Offers were hard to come by at around these levels. Significant activity was witnessed in the secondary market for outright T-bills. Papers having maturities ranging between 150 and 170 days changed hands between levels of 6.10% and 6.25%. while one year paper activity was hard to come by.

Market sentiment does reflect that no major change in yields in the auction the next week is expected and it would not be surprising that desperate buyers will participate at levels lower than previous cut-offs, yet again.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.75

06.70

12.00%

2 Year

07.35

07.35

12.50%

3 Year

07.70

07.75

13.00%

4 Year

08.25

08.30

13.25%

5 Year

08.70

08.85

13.50%

10 Year

09.80

09.90

14.00%

 


 

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

08 Aug

 16,700 Mln.

T-Bill

22 Aug 

19,550 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

08.00

07.00

10.00

1 Week

06.35

06.25

06.75

1 Month

06.05

06.00

09.00

3 Month

05.80

05.70

10.25

6 Month

06.10

05.85

11.00

1 Year

06.60

06.50

11.50

 


 

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

1 Month

06.40

06.25

09.75

2 Month

06.10

06.00

10.40

3 Month

05.85

05.80

10.50

4 Month

06.00

05.90

10.80

5 Month

06.10

06.00

10.90