|
The overnight market had been in the vicinity of
5.00% and 6.00% in the early parts of the week. One and two week
trades were conducted at 6.75% and 7.50% before rates in these tenors
also took a hike. The market ran short of liquidity and banks had to
resort to the State Bank repo window for discounting. The term market
also reacted and the one three and three months tenors rose sharply.
One month activity was witnessed at 6.50% before offers moved to the
7.00% mark. However borrowers were witnessed covering heavily in the
three month tenor at levels of 6.25% and later as high as 6.40%. Price
of the long term paper market continued to rise upwards from the
preauction levels. Participation in the auction was witnessed at a
maximum of 111.43, an effective yield of 9.23% against the coupon rate
of 11.00%. It should be kept in mind that this paper had earlier
traded two week prior to the auction at prices of 112.75. However post
auction activity was also reported as high as 112.50 but trades were
not reported higher.
The market has yet again run short of liquidity and
no intervention to ease this off seems to be in the offing and expect
the short term market to continue reflecting this sentiment.
Significant maturities are due in the first week of November, but
keeping in mind that a T-Bill auction is due prior to that, we feel
that heavy bidding by banks is expected for the one year paper.
| YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
06.75 |
06.60 |
09.00% |
|
2 Year |
06.90 |
07.10 |
09.75% |
|
3 Year |
07.00 |
07.20 |
10.50% |
|
4 Year |
07.50 |
07.50 |
11.00% |
|
5 Year |
08.00 |
08.15 |
11.50% |
|
10 Year |
09.10 |
09.25 |
12.50% |
| AUCTIONS |
|
BID
DATE
|
INSTRUMENT
|
RESULT
|
SETTLEMENT
|
|
Oct 16 |
T-BILL |
Oct 16 |
Oct 17 |
|
TARGET AMOUNT
|
BID
AMOUNT
|
ACCEPTED
AMOUNT
|
|
Rs 15,000 Mln
|
Rs 28,550 Mln
|
Rs 19,750 Mln
|
| 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 |
06.75 |
01.25 |
|
1 Week |
08.00 |
07.00 |
06.25 |
|
1 Month |
06.75 |
06.45 |
07.20 |
|
3 Month |
06.40 |
06.23 |
07.80 |
|
6 Month |
06.45 |
06.30 |
08.30 |
|
1 Year |
06.75 |
06.60 |
08.55 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
07.10 |
06.90 |
07.80 |
|
2 Month |
06.80 |
06.40 |
07.60 |
|
3 Month |
06.45 |
06.25 |
07.80 |
|
4 Month |
06.45 |
06.30 |
08.00 |
|
5 Month |
06.45 |
06.35 |
08.10 |
|
|
