FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 24, 2002

 

Volatility was witnessed in the interbank money market the past week. The week start with surplus liquidity in the system, which kept the overnight rates at the low end of the spectrum and major activity, took place in the band of 2.50% to 3.00% in the initial part of the week. But short term rates rose sharply, this sudden hike in the rates was because as the SBP

conducted its PIB and T-bills auction and mopped up total amount of around Rs.34 billion from the system.

The past week in term repo side, major activity was restricted to short term and deals in one and two weeks tenors were struck at 5.20% and 5.00% at the beginning of the week but rose later and rates in respected tenors hiked and deals were executed as high as 6.50% and 6.25%. One month rates also saw a sharp rise after deals were witnessed at 5.25% initially, and touched 6.00%. No major change in long term market was seen, rates in three month tenure was quoted in the band of 5.50% and 5.75% and nominal amounts were dealt at 5.65%. Buying interest in one year paper was seen around 6.65% prior to auction, but after the T-bill auction in which contrary to market expectation SBP accepted bids in one year and maintained the cut-off yield. Trades in one year T-bill was seen at 6.70%. No aggressive trades in one year paper were seen as banks prefer to hold on this paper rather looking for capital gains. A total bids of Rs.68.25 billion was witnessed against the target of Rs.22 billion, with bids for three months and one year were accepted at the previous cut-off of 5.8124% and 6.4373% accepting Rs.3.60 billion and Rs.22.55 billion in three and twelve months respectively. This week SBP also conducted PIB 10 year auction and accepted total amount of Rs.8 billion at the premium price of Rs.108.86.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.75

06.70

11.00%

2 Year

07.25

07.25

11.50%

3 Year

07.60

07.60

12.00%

4 Year

08.10

08.00

12.00%

5 Year

08.60

08.50

12.50%

10 Year

09.60

09.55

13.00%

 


 

AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Aug 21 T-BILL Aug 21 Aug 22
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.22,000 Mln.  Rs.68,250 Mln Rs.26,150 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

02.75

12.00

1 Week

06.50

04.00

10.25

1 Month

05.85

05.10

09.00

3 Month

05.70

05.55

09.35

6 Month

06.00

05.95

09.60

1 Year

06.55

06.50

10.00

 


 

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

1 Month

06.30

05.60

09.75

2 Month

06.10

05.70

09.50

3 Month

05.85

05.70

09.90

4 Month

06.00

05.90

10.00

5 Month

06.05

06.00

10.20