|
The market remained dry with overnight rates at
8.90% and a maximum discounting of Rs. 19.70 billion being conducted
at the SBP repo window. This intensity soon caused the one week market
to touch the 9.00% level while two week activity was witnessed in the
vicinity of 8.25%. Heavy covering in this tenor was primarily due to
the onset of Ramazan, in which the market experiences traditional
outflows. One month activity was reported at 7.00%, as few banks
buying the one year paper preferred to cover themselves in this
tenors. Brisk activity was conducted in the three month tenor at
around 6.10% at the start of the week but value date being the auction
settlement date. The auction the past week was for the sale of the
three month and one year paper. The participation of Rs. 62.70 billion
only against the one year paper did not come as a surprise. The State
Bank stuck to picking up the target amount only and accepted Rs. 40
billion at a new yield of 6.91% which was 8 bps lower than the last
one year's paper, sold in August. The latest PIB prices were in line
with the trend witnessed in the global markets the past week. Trades
were conducted as high as 112.30 which did ease off to 111.75, only to
be seen rising back to 112.00 after statements made by the Finance
Minister, regarding chances of a downward adjustment in the discount
rate.
The crunch has done little for banks to stay away
from the auction the past week. Heavy maturities are due next week
that will yet again keep the State Bank from intervening and providing
the much needed respite. Further, we feel that banks holding this
paper will continue to enjoy capital gains, as witnessed the past
week.
| YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
06.40 |
06.75 |
09.00% |
|
2 Year |
07.15 |
06.90 |
09.90% |
|
3 Year |
07.30 |
07.00 |
10.50% |
|
4 Year |
07.75 |
07.50 |
11.00% |
|
5 Year |
08.25 |
08.00 |
11.50% |
|
10 Year |
09.25 |
09.10 |
12.50% |
| AUCTIONS |
|
BID
DATE
|
INSTRUMENT
|
RESULT
|
SETTLEMENT
|
|
Oct 30 |
T-BILL |
Oct 30 |
Oct 31 |
|
TARGET AMOUNT
|
BID
AMOUNT
|
ACCEPTED
AMOUNT
|
|
Rs.40,000 Mln.
|
Rs.62,700 Mln.
|
Rs.40,000 Mln.
|
| MATURITIES |
INSTRUMENT |
DATE |
AMOUNT |
|
T-Bill |
06
Nov
|
21,600 Mln |
|
T-Bill |
14 Nov
|
30,850 Mln |
|
T-Bill |
28 Nov
|
2,500 Mln. |
REPO RATES |
|
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
Overnight |
08.93 |
08.90 |
09.90 |
|
1 Week |
08.85 |
08.00 |
08.50 |
|
1 Month |
07.00 |
06.75 |
08.25 |
|
3 Month |
06.45 |
06.40 |
08.00 |
|
6 Month |
06.38 |
06.45 |
08.25 |
|
1 Year |
06.60 |
06.75 |
08.60 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
07.65 |
07.10 |
08.75 |
|
2 Month |
06.75 |
06.80 |
08.10 |
|
3 Month |
06.65 |
06.45 |
08.10 |
|
4 Month |
06.55 |
06.45 |
08.20 |
|
5 Month |
06.45 |
06.45 |
08.30 |
|
|
