FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Sep 14, 2002

 

The interbank money market witnessed volatility, as week started with overnight rates at the higher side of the spectrum and funds in overnight changed hands in the band of 8.00% and 8.50%. But it was on Thursday, when rates in overnight rates fall like ninepins and due to this lending pressure, rates finally touched the rock bottom levels of 0.75% and 1.00% at the close of the week.

This ease in rates was mainly because of the heavy inflow which a state run bank had received on account of payments made for United Bank privatization and secondly another factor that eased the market was that the State Bank purchased dollar from the interbank. As overnight rates were on the higher side initially, due to which activity in one and two weeks were witnessed around 7.00% and 6.50% but later on deals were struck as low as 3.00% and 4.00% in the respected tenor. Rates in one months saw fall of around 100 to 120 basis points and deals were executed around 5.00%. Long term market also eased but, no aggressive borrowing was evident as banks are avoiding long term borrowing. Bids for three and six months were quoted at 5.40% and 5.70% against the offers of 5.80% and 6.10%. As the market is flooded with liquidity heavy demand for the T-bills was seen and activity in near one year to maturity paper was witnessed in the range of 6.50% to 6.35% and deals in six months paper was seen in the band of 6.00% to 6.10%. SBP has announced target of Rs. 7.00 billion for PIB three and five years which is due to be auctioned on 23rd of September and aggressive participation is expected.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

06.65

06.75

11.00%

2 Year

07.20

07.25

11.50%

3 Year

07.50

07.40

12.00%

4 Year

08.00

08.00

12.00%

5 Year

08.28

08.40

12.50%

10 Year

09.45

09.45

13.00%

 


 

AUCTIONS
BID DATE INSTRUMENT RESULT SETTLEMENT
Sep 04 T-BILL Sep 04 Sep 05
TARGET AMOUNT BID AMOUNT ACCEPTED AMOUNT
Rs.6,000 Mln.   Rs.60,230 Mln. Rs.17,625 Mln.

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

05 Sep

5,800 Mln.

T-Bill

19 Sep

16,181 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

01.00

08.25

05.75

1 Week

02.75

07.25

07.25

1 Month

04.80

06.15

09.45

3 Month

05.60

06.00

09.70

6 Month

05.90

06.15

10.00

1 Year

06.40

06.65

10.55

 


 

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

1 Month

05.10

06.50

10.45

2 Month

05.40

06.35

09.90

3 Month

05.60

06.10

09.80

4 Month

05.75

06.20

10.10

5 Month

05.85

06.25

10.20