FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Mar 22, 2003

 

Volatility was witnessed past week in interbank market contrary to the last week overnight rates quoted comparatively at the higher side with activity in the range of 0.50% to 4.00% throughout the week. The market opened with overnight in the band of 1.50% and 2.00%, later rates hiked and touched the level of 4.00% this hike in rates were mostly because of T-bill auction but after the auction rates fall and finally touched the rock bottom levels of 0.50%.

 

 

Due to the hike in overnight term rates also came under pressure and at the beginning borrowing interest in one and two weeks were present at 2.25% and 2.00% against the offers at 2.75% and 2.50%, later rates in respected tenors eased and deals were struck as low as 0.75% and 0.90%. Activity in one month saw at 2.00% prior to auction but shortly eased and deals were executed around 1.00%. No major change in long term market was seen, rates in three months tenor was quoted in the band of 1.50% and 1.75% and nominal amounts were dealt at 1.65%. This week SBP conducted T-bill auction and received heavy participation of around Rs.107 billion against the targeted amount of Rs. 40 billion. SBP restricted its self to the targeted amount with the cut-off yields of 2.0080% in three month and 2.7508% in one year. Aggressive buying interest was evident in T-bills and trades in latest one year paper were seen at 2.10% and six month T-bill change hands at 1.75%. Heavy demand for PIB's was witnessed and trades in 24/10/02 was seen as low as 4.25%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.30

02.35

07.00%

2 Year

02.60

02.85

07.75%

3 Year

02.90

03.15

08.50%

4 Year

02.90

03.15

08.75%

5 Year

03.35

03.75

09.50%

10 Year

04.25

04.50

10.75%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Mar 19 T-Bill 12 mth Mar 19 Mar 20
Mar 19 T-Bill 03 mth Mar 19 Mar 20

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.40,000 Mln

Rs.107,075 Mln.

Rs.40,925 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

00.25

01.75

03.25

1 Week

00.55

01.25

05.50

1 Month

00.90

01.45

05.75

3 Month

01.55

01.65

05.80

6 Month

01.80

02.00

06.25

1 Year

02.35

02.25

06.75

 

 

 


 

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

1 Month

01.40

01.90

05.90

2 Month

01.35

01.80

05.85

3 Month

01.50

01.85

05.80

4 Month

01.55

01.90

06.00

5 Month

01.60

01.90

06.25