Excess liquidity in the system kept rates at 1.50%
and 2.00% for overnight funds with one-week activity reported as low as
2.50%. Major activity was confined to shorter tenors, with significant
interest being evident in one month and trades were reported as high as
6.25%, but later rates eased off and touched the levels of 4.75%. Rates
in three and six months rose as the auction date approached and
borrowing interest was seen at 5.70% and 6.00% against the offers of
5.90% and 6.25%. Later rates fall-off sharply as offers were quoted as
low as 5.60% and 6.00% in the respected tenors. The auction attracted a
total amount of Rs. 55.00 billion with aggressive participation for the
six and one-year paper was seen. State Bank maintained the yield, as per
the markets expectation with accepting only six months bids at the cut
off yield of 6.43%. The total amount of Rs. 28.00 billion was picked up
against the target of Rs. 16.00 billion. Banks did initially panic but
with overnight, one and two weeks rates under pressure on both days
after the auction it became quite evident that the market is still
liquid. Due to the prevailing liquidity in the system aggressive buying
interest in T-bills was noted and deals were struck at 6.00% in the
latest six months paper. This week SBP has announced target of Rs. 8.00
billion for 10 year PIB which is to be auctioned on the 20th of August,
trades in this when issue paper were witnessed at the premium price of
around Rs 109.50.
| YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
06.75 |
06.75 |
11.90% |
|
2 Year |
07.35 |
07.35 |
12.40% |
|
3 Year |
07.70 |
07.70 |
12.90% |
|
4 Year |
08.40 |
08.25 |
13.00% |
|
5 Year |
08.50 |
08.70 |
13.50% |
|
10 Year |
09.60 |
09.80 |
14.00% |
| AUCTIONS |
| BID
DATE |
INSTRUMENT |
RESULT |
SETTLEMENT |
| Aug
07 |
T-BILL |
Aug
07
|
Aug
08 |
| TARGET AMOUNT |
BID
AMOUNT |
ACCEPTED AMOUNT |
| Rs.16,000
Mln |
Rs.54,700 Mln. |
Rs.28,800
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 |
05.00 |
08.00 |
12.83 |
|
1 Week |
04.75 |
06.35 |
11.50 |
|
1 Month |
05.25 |
06.05 |
10.50 |
|
3 Month |
05.70 |
05.85 |
10.90 |
|
6 Month |
05.95 |
06.10 |
11.25 |
|
1 Year |
06.45 |
06.60 |
11.55 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
05.60 |
06.40 |
11.50 |
|
2 Month |
05.70 |
06.10 |
11.00 |
|
3 Month |
05.55 |
05.80 |
10.50 |
|
4 Month |
05.80 |
06.00 |
11.00 |
|
5 Month |
05.95 |
06.10 |
11.05 |
|
