FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Mar 08, 2003

 

The past week was eventful in the interbank money market. It was the drastic slide in the yields of the six month Treasury Bill to a new level of 2.17%. It was the aggressive participation at a low of 2.01% that resulted in such a reduction. Term rates did also fall off but the magnitude did not cause much off an uproar as banks preferred to trade bills in the 

 

 

secondary market. Yields also fell off on all the PlBs across the board with the ten year paper trading at close to 4.50%.

The ovemight market was well below the 1.00% mark throughout the week as according to market estimates it was long by at least Rs. 20 billion. The acceptance of Rs. 30.65 billion resulted in a net outflow of Rs. 12 billion did hardly much to the current short term market and there was no change in the one and two week market of 1.00% and 1.25%, respectively. The result of 2.17%, resulted in buyers desperately seeking the paper in the secondary market that caused initial offers to be squared off at 1.75% and later at 1.65% as well. The market soon reflected the effects of the new weighted average yield of 2.09%. This also resulted in the yields on PlBs falling off sharply and no seller for the 24th October issue was evident around 5.15% mark. The slide started from 5.10% and trades continued at levels as low as 4.50%. The State Bank also announced the auction for the 25th of March with an target of Rs. 1.0 billion for each of the three, five and ten year PlBs. Initial bids for the ten year paper to be issued were available at 4.40% and 4.20%, but trades were hard to come by.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.25

02.35

07.00%

2 Year

02.35

03.60

07.75%

3 Year

02.40

03.70

08.50%

4 Year

02.40

04.00

09.50%

5 Year

03.60

04.00

09.50%

10 Year

04.50

05.20

10.75%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Mar 05 T-Bill 03 mth. Mar 05 Mar 06

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.30,000 Mln

Rs.103,930 Mln. 

Rs.30,650 Mln

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

06 Mar 

18,625 Mln.

T-Bill

20 Mar 

32,990 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.75

00.75

01.50

1 Week

01.13

00.75

04.50

1 Month

01.50

01.00

05.30

3 Month

01.75

01.63

05.65

6 Month

01.85

02.05

06.15

1 Year

02.33

02.53

06.75

 


 

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

1 Month

01.90

01.65

05.30

2 Month

01.80

01.75

05.60

3 Month

01.75

01.90

05.65

4 Month

01.70

01.90

05.80

5 Month

01.70

02.00

06.25