FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Nov 09, 2002

 

The money market remained glued at the higher end with the liquidity crunch causing banks to approach the State Bank discount window on a daily basis. The overnight market did ease off slightly but only to be seen closing back at the sky high level. There was no primary activity the past week nor was there any intervention by the State Bank to alleviate the dryness in the market.

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