FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated June 14, 2003

 

The interbank money market remained with surplus of liquidity and no major change in rates was seen past week. The prevailing liquidity kept the overnight rate the bottom level throughout the week, due to which bank prefers to cover their position through overnight because of this no major activity was observed in term side. The past week aggressive trading was seen in bond market, where early trades in the PIB ten years was witnessed in the band of 5.10% and 5.25%, later drastic fail was seen with aggressive buying pressure was nosed due to which trades in 24/10/02 ten year PIB was witnessed as low as 4.65%,

 

 

this fall in yields were mainly because of the news that the government set low target of around Rs. 15.00 billion for next fiscal year for raising domestic debt through these bonds. Past week SBP conducted its T-bill auction for three months and one year paper with an auction target of Rs. 25.00 billion. Heavy participation of around Rs. 75.00 billion was witnessed but State Bank restricted its self to the target amount. Central Bank took market by surprise by decreasing the cut-off yield by around 30 basis points and accepted Rs. 26.00 billion with a cut-off yield of 2.3711% in one year and rejected all the bids in three months. After the T-bill auction desperate buying was noted and trades in 16/05/03 one year paper was seen around 2.10%.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.30

02.60

07.25%

2 Year

02.80

03.10

08.10%

3 Year

03.10

03.35

08.75%

4 Year

03.10

03.50

09.00%

5 Year

03.75

04.00

09.75%

10 Year

04.80

05.40

10.85%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jun 11 T-Bill 03 mth. Jun 11 Jun 12
Jun 11 T-Bill 12 mth. Jun 11 Jun 12

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.25,000 Mln.

Rs.75,500 Mln.

Rs.26,000 Mln.

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

12 Jun

32,350 Mln.

 

 

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.70

01.75

00.85

1 Week

01.00

01.25

03.35

1 Month

01.60

01.60

05.25

3 Month

01.75

01.85

05.70

6 Month

01.85

02.05

06.15

1 Year

02.20

02.60

06.80

 

 

 


 

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

1 Month

01.90

02.00

05.40

2 Month

01.75

01.75

05.60

3 Month

01.75

01.85

05.75

4 Month

01.80

01.95

06.10

5 Month

01.80

02.00

06.15