|
The overnight market touched a low of 2.50% on the
inflow of Rs. 13 billion early in the week and did rise after the
auction settlement and touched 7.00%, but only temporarily with most
of the funds changing hands at around 5.00%. Towards the end of the
week activity was witnessed at around 4.00% as well. The one week
tenor was the most activity dealt the past week. Volatility caused
trades in between wide bands of 4.75% and 6.00% throughout the week.
The benchmark six month T-Bill auction with a target of Rs. 20 billion
was announced against the scheduled one year paper. This did not come
as a surprise as being the first auction after the reduction in the
discount rate, cut-off yields needed to be set by the authorities. Rs.
68.725 billion was bid for the paper with the State Bank accepting
only Rs. 25.10 billion. The new cut-off of 4.84% was exactly 153 b.p.s
lower than the last auction conducted on the 14th of November. Banks
did bid as low as 4.51% for this new paper which also reflected that
this paper would be yielding capital gains, which it did so soon
afterwards. The T-Bill market slid sharply and it was on the last
working day of the week that this paper was traded at yields close to
4.20%. The 10 year bond prices also continued to rise and this long
term paper traded at record yields of 6.97% as well.
The interbank market is still excessively long and
feel that outflows on account of Eid will only marginally affect the
short term market. We feel that there is still room for yields on
T-bills to ease off in the secondary market.
|
YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
04.70 |
05.10 |
08.75% |
|
2 Year |
05.30 |
05.70 |
09.50% |
|
3 Year |
05.70 |
06.00 |
10.75% |
|
4 Year |
05.70 |
06.00 |
11.00% |
|
5 Year |
05.90 |
06.35 |
11.25% |
|
10 Year |
06.95 |
07.35 |
12.25% |
| AUCTIONS |
|
BID
DATE
|
INSTRUMENT
|
RESULT
|
SETTLEMENT
|
|
Nov 27 |
T-BILL |
Nov 27 |
Nov 28 |
|
TARGET AMOUNT
|
BID
AMOUNT
|
ACCEPTED
AMOUNT
|
|
Rs.20,000 Mln.
|
Rs.68,725 Mln.
|
Rs.25,100 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 |
04.50 |
03.25 |
09.90 |
|
1 Week |
04.00 |
03.00 |
08.50 |
|
1 Month |
03.75 |
03.35 |
08.00 |
|
3 Month |
03.70 |
04.10 |
07.85 |
|
6 Month |
04.05 |
04.50 |
08.10 |
|
1 Year |
04.40 |
05.10 |
08.50 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
04.25 |
03.85 |
08.40 |
|
2 Month |
03.80 |
04.10 |
07.90 |
|
3 Month |
03.90 |
04.20 |
07.85 |
|
4 Month |
03.90 |
04.30 |
07.95 |
|
5 Month |
04.00 |
04.40 |
08.00 |
|
|
