|
The SBP repo discount window was tapped throughout
the week and the figure ranged between Rs. 9 billion and Rs. 15.5
billion. Some banks did cover themselves for one week at levels of 8.75%
and 8.00% respectively but these rates fell as the week drew to a close.
Maturities expected early in the week saw banks hurriedly placing one
week funds as low as 7.50%. This sudden fall in the short term levels
had a bearing on the one and two month rates that also eased off after
trading as high as 7.00% and 6.60%, respectively. Relatively high bids
in the two month tenor were squared off till borrowers quoted bids at
around 6.20%. Activity in the three and six month tenors was hard to
come by with bids and offers in the band of 6.00% and 6.25% for both the
tenors. The announcement of the PIB auction saw heavy interest from
certain quarters in the market. It did come as a surprise that even with
the Rs. 12 billion target buyers were initially witnessed at a yield/
price of 9.05%/112.65 for the ten year GoP instrument. However this
price soon fell to a low of 110.25 by Friday mid day only to be seen
touching 111.00 and closing at 110.75 at the end of the week.
The market finally got the news that T-Bill auctions
would now be restricted to either the three month and one year papers or
the six month paper and would be conducted fortnightly. We feel that
there would again be heavy participation in the coming auction. Bids
would be highly competitive and banks participating at levels lower than
the last auction might be witnessed as well.
| YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
06.60 |
06.40 |
11.00% |
|
2 Year |
06.90 |
06.75 |
11.50% |
|
3 Year |
07.10 |
07.00 |
12.00% |
|
4 Year |
07.50 |
07.50 |
12.00% |
|
5 Year |
08.10 |
08.80 |
12.75% |
|
10 Year |
09.35 |
09.85 |
13.50% |
| AUCTIONS |
|
BID
DATE
|
INSTRUMENT
|
RESULT
|
SETTLEMENT
|
| Oct
02 |
T-BILL |
Oct
02
|
Oct
03 |
|
TARGET AMOUNT
|
BID
AMOUNT
|
ACCEPTED
AMOUNT
|
|
Rs.4,000 Mln
|
Rs.55,690 Mln
|
Nil
|
| MATURITIES |
INSTRUMENT |
DATE |
AMOUNT |
|
T-Bill |
03 Oct
|
4,100 Mln. |
|
T-Bill |
17
Oct
|
6,950 Mln. |
|
T-Bill |
31 Oct
|
29,900 Mln. |
REPO RATES |
|
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
Overnight |
08.90 |
08.90 |
06.00 |
|
1 Week |
07.75 |
08.50 |
09.25 |
|
1 Month |
06.60 |
06.65 |
09.40 |
|
3 Month |
06.20 |
06.00 |
09.90 |
|
6 Month |
06.30 |
06.00 |
10.30 |
|
1 Year |
06.50 |
06.35 |
10.65 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
07.00 |
07.00 |
10.40 |
|
2 Month |
06.50 |
06.20 |
09.80 |
|
3 Month |
06.30 |
06.10 |
10.00 |
|
4 Month |
06.30 |
06.10 |
10.10 |
|
5 Month |
06.20 |
06.10 |
10.25 |
|
|
