FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated May 24, 2003

 

Interbank money market was unchanged with rates remaining on the higher side throughout the week. Activity in overnight was confined mainly in the band of 4.25% and 4.75%, for most part of the week. As the overnight rates were quoted at the higher side no aggressive lending was seen in short term due to which short term remained under pressure. Borrowers restricted themselves to the short term due to

 

 

which activity in one and two week was initiated as high as 4.00% and 3.50%. One month remain stagnant with bids and offers quoted in the band of 2.30% and 2.60%, deals were executed around 2.50%. Two months was comparatively more active for the borrowers as it provide the opportunity to cover positions over June, deals in the respective tenor was struck in the band of 2.15% to 2.25%. Three and six months remained unchanged during the week and quoted in the band of 2.10% and 2.30%, however, no major trades were seen in the respective tenor. As the rates were on the higher side, aggressive selling pressure was seen in papers, however, no major buying interest was observed, due to which trades in latest one year T-bill was seen in the band of 2.55% to 2.60%. Market is of the view that rates will remain at the prevailing levels in the days to come but upward adjustment in the cutoff yield is expected in T-bill auction due in the coming week.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.65

02.75

07.10%

2 Year

03.00

03.10

08.00%

3 Year

03.25

03.25

08.70%

4 Year

03.15

03.15

08.40%

5 Year

03.70

03.60

09.75%

10 Year

05.05

04.90

10.75%

 


 

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

03.00

04.25

08.90

1 Week

03.00

03.50

08.25

1 Month

02.30

02.75

07.00

3 Month

02.10

02.25

06.15

6 Month

02.10

02.30

06.55

1 Year

02.55

02.75

06.90

 


 

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

1 Month

02.70

03.00

07.75

2 Month

02.15

02.40

06.75

3 Month

02.15

02.30

06.25

4 Month

02.15

02.25

06.40

5 Month

02.15

02.20

06.50