FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated June 06, 2003

 

The Interbank market experienced volatility and same trend was observed due to which activity was conducted mainly in short term. Overnight after traded in the band of 2.50% and 3.00% touched the rock bottom levels of 0.25%. This week State Bank conducted its six months T-bill auction and increase the cut-off yield of this paper.
Before the announcement of T-bill auction target overnight rates were quoted comparatively at the

 

 

higher  side with trades were seen around 2.50%. Later, rates gradually eased and after the auction sharp fall was noted and rates touched the rock bottom levels of 0.25% and 0.50%. Same pressure was witnessed in one and two weeks where early trades were executed around 2.75% and 2.25%, drastic fall was seen in the respected tenors with trades were witnessed at record low levels of 0.75% and 1.00%. Lending pressure was evident in one month as its maturity fall before June, due to which lenders squired off bids of 1.50% and 1.20%. Three and six month's tenors saw no major trades however; bids were quoted at 1.75% to 1.80% against the offers at 2.00% to 2.10%. Due to surplus liquidity in the system aggressive buying of T-bills was seen in secondary market. Trades in latest one year T-bill was witnessed as low as 2.35%. This week State Bank in its T-bill auction of six months accepted Rs. 23.700 billion against the target amount of Rs. 22.00 billion, the most significant part of this auction was that SBP improved the cut-off yield by around 15 basis points this move was as per expectation of the market. In long term bond, aggressive trading was seen in PIBs with trades were executed in the band of 4.96% to 5.08%. As there is no major change in the market scenario rates are expected to remained at the prevailing levels in the week to come.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.60

02.65

07.10%

2 Year

03.00

03.00

07.60%

3 Year

03.30

03.25

08.60%

4 Year

03.50

03.15

09.50%

5 Year

03.75

03.70

09.60%

10 Year

05.05

05.05

10.50%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

May 28 T-Bill 06 mth May 28 May 29

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.22,000 Mln. 

Rs.40,500 Mln. 

Rs.23,700 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

00.30

03.00

08.25

1 Week

00.80

03.00

07.00

1 Month

01.20

02.30

06.50

3 Month

01.80

02.10

06.35

6 Month

02.00

02.10

06.65

1 Year

02.45

02.55

07.00

 

 

 


 

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

1 Month

01.60

02.70

07.00

2 Month

01.70

02.15

06.80

3 Month

01.70

02.15

06.35

4 Month

01.75

02.15

06.45

5 Month

01.75

02.15

06.55