FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated June 21, 2003

 

The interbank money market was eventful past week. Bank generally prefers to trade in short term market and activity was concentrated in one and two week tenors, while nominal activity was seen in outright T-bills. Volatility was witnessed in long term bond where aggressive trading was noted. No change in the liquidity status was seen due to which rates remained at the rock bottom levels. No major activity was seen in long term and activity was confined in short term due to which one week trades were witnessed as low as 0.50%, two week was the central of attraction as its provide the opportunity to cross over June due to which activity in the respective tenor was seen as high as 3.25%. 

 

 

State Bank conducted OMO to mop the surplus liquidity and accepted Rs.10.00 billion in one week at the cut-off rate of 1.11%. This outflow turn to be not sufficient enough to move the rates and market remained at the lower levels. No major activity was evident in outright T-bills however, bids and offers for one year latest paper was quoted in the band of 2.25% and 2.30% and trades were executed around 2.30%. The most significant part of the week was the announcement of unexpected heavy PIB target of Rs. 30.00 billion which totally change the sentiments of the market, after the announcement of target panic selling was seen due to which trades in PIB ten year 24/10/02 was struck as high as 6.50%, later eased and trades in this issue was seen around 5.85%. Major demand was seen for the paper which carry the coupon of 13% and 14% and activity in the respective paper was observed around 5.80% and 5.85%. Volatility was witnessed in PIB ten year when issue where early trades took place around 6.10% but as the week progressed activity was noted around 5.80%, but near the close of the week yields bounced back to the higher side and trades were witnessed around 6.00%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.60

02.30

07.00%

2 Year

03.10

02.80

08.00%

3 Year

03.80

03.10

08.75%

4 Year

04.00

03.10

09.00%

5 Year

04.60

03.75

09.75%

10 Year

05.90

04.80

10.75%

 

 

 


 

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

00.45

00.70

00.25

1 Week

00.80

01.00

03.75

1 Month

02.30

01.60

05.60

3 Month

02.15

01.75

05.65

6 Month

02.20

01.85

06.15

1 Year

02.55

02.20

06.80

 


 

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

1 Month

02.80

01.90

05.85

2 Month

02.20

01.75

05.75

3 Month

02.15

01.75

05.70

4 Month

02.10

01.80

05.85

5 Month

02.00

01.80

06.05