FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Jan 04, 2003

 

The interbank money market witnessed heavy drought on the 31st of December and towards the end of the week. The year end cause the short term rates at around the discount rates of 7.50%. The market maintained upward trend for the rest of the week with rates remaining on the higher side across the board. The year end saw banks approaching SBP for respite and heavy discounting of Rs. 22.70 

 

 

billion. Due to the liquidity crunch the short term rates also come under pressure and trades in one and two weeks before 31st December were executed in the band of 7.25% and 7.50% and 5.50% and 6.00%. Rates in one and two weeks eased after the year end but this ease in rates were temporary later rates bounced back to the higher levels and bids and offers were quoted in the band of 7.00% and 7.30% in one week and 5.25% and 5.75% in two weeks. Volatility was witnessed in one month and funds changed hands around 4.50% at the early part of the week, later rates slid and deals were struck as low as 4.00%, but near the end of the week took a hike and quoted in the band of 4.00% and 4.50%. In long term three month tenor was the most active and trades were seen around 3.85%. There was no major activity in six month tenor but offers were quoted at 4.00%. The T-bill market was active in the past week, the one year paper with maturity of around 355 days were traded below the 4.00% mark. The SBP conducted PIBs auction on 30th Dec, 2002 and accepted targeted amount of Rs. 5 billion with the cut-off yields of 4.74%,4.93% and 5.67% in three, five and ten year bonds. The T-bill auction is due in the week to come and market is of the view that a further downward adjustment is expected.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

04.00

04.20

08.40%

2 Year

04.20

04.70

09.00%

3 Year

04.40

04.90

10.60%

4 Year

04.40

05.00

11.00%

5 Year

04.60

05.10

11.10%

10 Year

05.10

05.65

12.10%

 

 

 


 

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

09 Jan 

39,330 Mln

T-Bill

23 Jan

15,800 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

07.40

07.35

01.25

1 Week

07.00

07.50

04.50

1 Month

04.20

05.45

06.50

3 Month

03.90

04.10

07.00

6 Month

03.90

03.55

07.50

1 Year

04.10

04.15

07.95

 

 

 


 

TREASURY BILL RATES
MATURING THIS WEEK 1 WEEK AGO 1 YEAR AGO

1 Month

04.70

06.00

06.90

2 Month

04.10

04.30

06.90

3 Month

03.85

04.00

07.10

4 Month

03.80

04.00

07.20

5 Month

03.80

03.90

07.50