|
The shortfall in the market touched a maximum of Rs.
15.10 the past week only to seen reducing as the weekend neared .
Overnight rates did stay at the maximum level earlier in the week but
eased marginally on the first working day of Ramazan, i.e. Friday. One
and two week rates also eased off after activity in these tenors had
been conducted as high as 8.90% and 7.75%. Levels fell off to 7.00%
and 7.75% in the respective tenors with heavy amounts changing hands.
Pre-Ramazan outflows besides the ongoing shortfall were the main
reasons behind the current dearth of liquidity in the market. Even the
Rs. 21.60 billion maturity on the 6th could to manage to cover up for
the ongoing shortfall in the market. Activity in the term market was
hard to come but interest being evident in the three and six month
tenors only. The secondary market for T-Bill was active the past week
with heavy trades being conducted for the Iatest one year paper. The
paper changed hands in between the narrow band of 6.65% and 6.75%
while August issued papers were traded at 6.60% as well. PIB prices
gradually moved upwards from 111.60 to close at around 112.20 at the
end of the week.
A rate cut was witnessed the past week but was
announced by the Federal Reserve on Wednesday. Rumors of such a
possibility were heard in our market but no such change was witnessed.
| YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
06.75 |
06.40 |
08.90% |
|
2 Year |
06.95 |
07.15 |
09.90% |
|
3 Year |
07.15 |
07.30 |
10.50% |
|
4 Year |
08.00 |
07.75 |
11.00% |
|
5 Year |
08.15 |
08.25 |
11.50% |
|
10 Year |
09.15 |
09.25 |
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 |
08.90 |
08.93 |
09.90 |
|
1 Week |
07.75 |
08.85 |
08.50 |
|
1 Month |
06.80 |
07.60 |
07.90 |
|
3 Month |
06.40 |
06.45 |
07.90 |
|
6 Month |
06.40 |
06.38 |
08.15 |
|
1 Year |
06.60 |
06.60 |
08.50 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
07.10 |
07.65 |
08.40 |
|
2 Month |
06.75 |
06.75 |
08.10 |
|
3 Month |
06.40 |
06.65 |
07.90 |
|
4 Month |
06.40 |
06.55 |
08.00 |
|
5 Month |
06.40 |
06.45 |
08.10 |
|
|
