FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 31, 2002

 

Contrary to the last week closing the overnight rates remained at the higher side throughout the week. Funds in overnight changed hand in the wide band of 7.00% and 8.90%, but no discounting was reported except on the last day of the week where banks approached State Bank for respite and heavy discounting of Rs. 9.00 billion was reported.

In term repo side no major change was witnessed and banks preferred to cover their position in shorter tenor due to which major activity was executed in one and two weeks. No aggressive lending in the respected tenor was seen as the banks were of the view that rates will remain on the higher side. Activity in one and two week initially took place around 6.25% and 6.00%, but as the overnight rates shot up short term rates also came under pressure and took a hike and remained in the same level for the rest of the week, except for Friday where rates comparatively eased and activity in the respected tenor was seen at 6.50% and 6.25%. This ease in rates was temporary, later rates bounced back to the higher levels at the end of the day. Significant interest was evident in one month and trades were seen around 6.00% level nearly all throughout the week. Long-term market remained firm and borrowing interest in three and six months were evident at 5.65% and 5.85%, against the offers of 5.85% and 6.00%. Initially, trades in latest one year T-bill was reported at 6.70%, but with the nearing of the auction date bids for this paper was quoted at 6.75% against the offers of 6.65%.

Market is not expecting any intervention by State Bank in the coming week, and T-bill auction is also due, we expect heavy participation in six and one year paper and no change in the cut off yields is expected.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.70

06.75

11.00%

2 Year

07.25

07.25

11.50%

3 Year

07.50

07.60

12.00%

4 Year

08.00

08.10

12.00%

5 Year

08.50

08.60

12.50%

10 Year

09.45

09.60

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

07.75

08.00

11.90

1 Week

06.50

06.50

10.50

1 Month

06.00

05.85

09.55

3 Month

05.85

05.70

09.50

6 Month

06.05

06.00

10.20

1 Year

06.55

06.55

10.70

 


 

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

1 Month

06.50

06.30

10.50

2 Month

06.20

06.10

09.90

3 Month

06.00

05.85

09.85

4 Month

06.00

06.00

10.00

5 Month

06.10

06.05

10.10