|
The overnight market initially at levels of 4.50%
and 5.50% soon moved upwards as the auction drew near. The acceptance
of Rs. 13.25 billion for the six month T-Bill resulted in the change
in the sentiment of the market. Overnight rates shot up and touched
the 7.40% level. This was the first time that the market fell short of
liquidity and touched the new discount rate of 7.50%. A total of Rs.
6.60 billion of discounting was conducted on the settlement date of
the auction. It was desperate covering in the shorter tenors of one
and two week at 6.00% and 7.00% that saw one month rates jump up an
cross 5.00% after remaining at around 4.50% for the last two weeks.
However this sudden hike in rates was only temporary and activity in
two week and one month was witnessed at pre-auction levels of 4.00%. A
total participation of Rs. 41.825 billion was witnessed for the 6
month paper out of which Rs. Rs. 13.25 billion was accepted at a new
cut-off 4 45%. This 40 basis points cut did not come much as surprise
was most in the market but desperate buying caused this paper to soon
trade as low as 4.05%. Desperate buying was also evident for the ten
year paper that traded at yet again record levels of 6.33% i.e. prices
of 134.
|
YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
04.45 |
04.70 |
08.65% |
|
2 Year |
04.85 |
05.30 |
09.35% |
|
3 Year |
05.10 |
05.70 |
10.75% |
|
4 Year |
05.50 |
05.70 |
11.00% |
|
5 Year |
05.50 |
05.90 |
11.25% |
|
10 Year |
06.35 |
06.95 |
12.25% |
| AUCTIONS |
|
BID
DATE
|
INSTRUMENT
|
RESULT
|
SETTLEMENT
|
|
Dec 11 |
T-BILL |
Dec 11 |
Dec 12 |
|
TARGET AMOUNT
|
BID
AMOUNT
|
ACCEPTED
AMOUNT
|
|
Rs.10,000 Mln
|
Rs.41,825 Mln
|
Rs.13,250 Mln
|
| MATURITIES |
INSTRUMENT |
DATE |
AMOUNT |
|
T-Bill |
12 Dec
|
3,000 Mln. |
|
T-Bill |
26 Dec
|
13,460 Mln. |
REPO RATES |
|
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
Overnight |
04.25 |
04.50 |
03.00 |
|
1 Week |
04.25 |
04.00 |
05.00 |
|
1 Month |
04.25 |
03.75 |
07.00 |
|
3 Month |
04.20 |
03.70 |
07.55 |
|
6 Month |
04.10 |
04.05 |
07.80 |
|
1 Year |
04.30 |
04.40 |
08.25 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
04.75 |
04.25 |
07.40 |
|
2 Month |
04.40 |
03.80 |
07.50 |
|
3 Month |
04.25 |
03.90 |
07.65 |
|
4 Month |
04.10 |
03.90 |
07.75 |
|
5 Month |
04.00 |
04.00 |
07.80 |
|
|
