FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated May 17, 2003

 

Contrary to last week borrowers saw a sight of relieve in the Interbank money market. Overnight rates after touching the sky high levels eased off and touched the rock bottom level of 0.50% prior to T-bill auction.
Market after closing at the higher side week started with rates at the lower side of the spectrum with major trades in overnight was seen in the band of 1.25% to 1.50%. This sudden ease was mainly because of the clear indication by the authorities that they will

 

 

intervene in the market to stabilize the rates which was previously done. Due to the ease overnight rates one and two week also traded as low as 1.75% and 2.00% respectively. Same was the trend in tenors where offers for one, three and six months were available in the band of 2.00% to 2.20% prior to T-bill auction. After the auction rates bounced back to the previous levels, the reason for this hike was that the liquidity was kept with few banks. Due to which overnight activity was seen in the band of 4.50% and 5.00%. One and two week also took a hike and trades in the respective tenors were executed around 4.50% and 3.00%. One month also saw a hike of around 100 basis points and traded around 2.90%. Three and six months were quoted in the band of 2.15% and 2.40% and no major activities, was observed.

Past week Central Bank conducted T-bill auction with pre-auction target of Rs. 42.00 billion against the net maturity amount of Rs. 42.00 billion. As expected heavy participation of around Rs. 86.00 billion was seen and the centre of attraction was one year paper where major participation was witnessed. SBP restricted its self close to the targeted amount and accepted Rs. 41.930 billion with the cutoff yield of 2.6735% in one year and rejected all bids in three months. Aggressive selling interest in latest one year paper was seen in the secondary market, with trades witnessed as high as 6.65%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.75

02.60

07.10%

2 Year

03.10

02.95

07.75%

3 Year

03.25

03.15

08.40%

4 Year

03.15

03.15

08.40%

5 Year

03.60

03.50

09.40%

10 Year

04.90

04.85

10.60%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

May 14 T-Bill 03 mth. May 14 May 16
May 14 T-Bill 12 mth. May 14 May 16

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.42,000 Mln.

Rs.85,980 Mln.

Rs.41,930 Mln.

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

02 May

7,650 Mln.

T-Bill

15 May

45,400 Mln.

T-Bill

29 May

25,500 Mln.

 

 

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

04.25

01.50

08.90

1 Week

03.50

01.50

07.25

1 Month

02.75

02.00

06.20

3 Month

b2.25

01.90

06.00

6 Month

02.30

01.95

06.30

1 Year

02.75

02.50

06.75

 

 

 


 

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

1 Month

03.00

02.40

06.80

2 Month

02.40

02.10

06.35

3 Month

02.30

01.80

06.00

4 Month

02.25

01.85

06.15

5 Month

02.20

01.90

06.35