|
Short term overnight activity was conducted at
levels of 1.50% but after the T-Bill auction rates rose and touched
5.00%. Outflows were reported in the market and the market touched
7.50% on the weekend. Activity in the one and two week tenors was
brisk with an upsurge in rates. Initial trades in the respective
tenors were conducted at 6.25% and 5.50% as both tenors crossed the
year end mark, but soon rates touched 7.50% and 6.50%. One month rates
also rose from the previous week's close of 4.50% to touch 5.50% on
Saturday. The auction attracted total bids of Rs. 53.05 billion
against the pre-auction target of Rs. 15 billion. Rs. 20.15 billion
was accepted at yields of 3.90% and 4.44% for the papers. Activity
following the result announcement was brisk and the one year paper
traded at a record low of 4.20% in the secondary market. This did not
come as a real surprise keeping in mind that the six month paper had
already traded below 4.00% as well. The PIB auction scheduled for
Monday with a target of only Rs. 5 billion will further reflect the
long term investment sentiment. It should be kept in mind that the ten
year paper with a new coupon of 9.00% has traded at yield close to
5.60%.
Banks have been gearing up the year end by covering
themselves for one week at levels as high as the discount rate. It is
felt that the market will experience a shortfall but we strongly feel
that market would be provided relief by the authorities.
|
YIELD PROFILE |
FEDERAL INVESTMENT BONDS |
| . |
THIS
WEEK |
1
WEEK AGO |
1
YEAR AGO |
|
1 Year |
04.20 |
04.10 |
08.50% |
|
2 Year |
04.70 |
04.40 |
09.25% |
|
3 Year |
04.90 |
04.60 |
10.75% |
|
4 Year |
05.00 |
04.80 |
11.00% |
|
5 Year |
05.10 |
05.00 |
11.25% |
|
10 Year |
05.65 |
05.70 |
12.25% |
| AUCTIONS |
|
BID
DATE
|
INSTRUMENT
|
RESULT
|
SETTLEMENT
|
|
Dec 24 |
T-Bill
03 mth |
Dec 24 |
Dec 26 |
|
Dec 24 |
T-Bill
12 mth |
Dec 24 |
Dec 26 |
|
TARGET AMOUNT
|
BID
AMOUNT
|
ACCEPTED
AMOUNT
|
|
Rs.15,000 mln
|
Rs.53,050 mln
|
Rs.20,150 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 |
|
1 Week |
07.50 |
02.75 |
07.50 |
|
1 Month |
05.45 |
04.25 |
07.43 |
|
3 Month |
04.10 |
03.88 |
07.30 |
|
6 Month |
03.85 |
03.80 |
07.45 |
|
1 Year |
04.15 |
04.25 |
07.85 |
| TREASURY
BILL RATES |
| MATURING |
THIS WEEK |
1 WEEK AGO |
1 YEAR AGO |
|
1 Month |
06.00 |
04.60 |
07.50 |
|
2 Month |
04.30 |
04.10 |
07.45 |
|
3 Month |
04.00 |
03.90 |
07.40 |
|
4 Month |
04.00 |
03.85 |
07.50 |
|
5 Month |
03.90 |
03.80 |
07.55 |
|
|
