FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated June 28, 2003

 

Overnight activity was restricted below 0.50% for most parts of the week. Fund changed hands between lows of 0.25% to 0.40%. One and two week rates also remained under pressure with trades in respective tenors at 0.90% and 1.75% while lowest activity for one month was also reported at 1.50%. Rates slightly turned around on Wednesday that saw some banks covering themselves as high as 2.25% and 3.00% in one and two week but lenders were unable to hold onto rates for long, rates fell back to the 1.50% mark. Banks covered themselves in the one month tenor where funds changed hands initially between 2.00% and 2.10% however, at the end of the week trades were seen at 1.45% to 1.55%. 

 

 

Few deals were executed in six months tenor at 1.80% during the week. The T-Bill secondary market was active throughout the past week with the one year paper changing hands at 2.15% and 2.00%, respectively. The long term market was also active and trades in ten year PIB issue of 24th October 2002, being conducted initially at 5.90% but more demand brought the yields down and at the close of the week deals were seen as low as 5.60%. The six month T-Bill auction was conducted on Wednesday, the 25th June, 2003 and witness participation of Rs.19.375 billion against target amount of Rs.2.0 billion. The SBP mopped up only Rs.1.5 billion with the cut-off rates at levels of 1.6693% with downward adjustment of 17 basis points from the previous cut-off of 1.8414%. The SBP conducted PIBs auction on Saturday, while the settlement will be due on 30th June, 2003. The pre-auction target for three years is Rs.2.0 billion, Rs.3.0 billion for five years and Rs.25.0 billion for ten years with participation of Rs.6.019 billion, Rs.7.864 billion and Rs. 75.181 billion respectively. The SBP accepted around Rs.1.9 billion, Rs.3.0 billion and Rs.24.0 billion with an upward adjustment of 0.36 to 1.64 basis points in the cut-off yields that is 3.2291%, 4.2976% and 5.6704% for three, five and ten years PIBs.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.20

02.60

06.65%

2 Year

02.80

03.10

07.25%

3 Year

03.00

03.80

07.90%

4 Year

03.50

04.00

08.00%

5 Year

03.90

04.60

09.10%

10 Year

05.20

05.90

10.10%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jun 25 T-Bill 06 mth. Jun 25 Jun 26

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.2,000 Mln.

Rs.19,375 Mln.

Rs.1,500 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

12 Jun

32,350 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.50

00.45

08.70

1 Week

02.50

00.80

07.75

1 Month

02.10

02.30

06.25

3 Month

01.80

02.15

05.55

6 Month

01.85

02.20

05.95

1 Year

02.20

02.55

06.50

 

 

 


 

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

1 Month

02.40

02.80

06.35

2 Month

02.00

02.20

05.80

3 Month

01.90

02.15

05.60

4 Month

01.90

02.10

05.75

5 Month

01.85

02.00

05.90