FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 17, 2002

 

The interbank market was flooded with liquidity the past week with short term rates remaining towards the end of the spectrum. Most of the activity was yet again concentrated in the shorter tenors of one, two week and one month. No primary market activity was due this week and the State Bank also refrained from conducting an OMO to mop up the excess liquidity from the market.

The overnight market was depressed with activity mostly between the 2.00% and 3.00% level. There were upward movements but only temporarily to the 5.00% before rates fell again. One and two week activity was witnessed at lows of 3.00% and 4.00% but amounts traded were thin. It was the one month tenor that saw banks covering themselves before the 14th August national holiday. Trades were reported around 4.75% but later in the week rates rose and touched the 5.l5% level. Generating one month funds below 5.00% did seem attractive as another T-Bill auction coupled with the PIB auction target of Rs. 8 billion are just around the corner. Three and six month trades were hard to come by but the interest was evident in long dated T-Bills. The latest six month T-Bill changed hands at around 6.05% while eight and nine months to maturity traded close to 6.30%.

No major change in the sentiment is expected. We feel that another massive participation is to be seen in the T-Bill auction, while the PIB auction also due next week should easily manage to attract the target amount.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.70

06.75

11.90%

2 Year

07.25

07.35

12.40%

3 Year

07.60

07.70

12.90%

4 Year

08.00

08.40

13.00%

5 Year

08.50

08.50

13.50%

10 Year

09.55

09.60

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

02.75

05.00

03.50

1 Week

04.00

04.75

04.05

1 Month

05.10

05.25

07.50

3 Month

05.55

05.55

09.38

6 Month

05.95

05.95

09.93

1 Year

06.50

06.45

10.63

 


 

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

1 Month

05.60

05.60

08.50

2 Month

05.70

05.70

09.25

3 Month

05.70

05.70

09.60

4 Month

05.90

05.80

09.75

5 Month

06.00

05.95

10.15