FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated July 05, 2003

 

Rates remained on the higher side of the yield curve in the interbank money market on the 30th of June. The fiscal year end did cause the market to experience short term rates just below the discount rate. The market maintained a downward trend for the rest of the week with rates easing in all tenures.The fiscal year end saw banks covering them selves at the sky-high of 7.45%, but rest of the week trades were conducted at levels in between wide band of 0.50% and 4.00%. Heavy activity was conducted in one week repos where sharp fall was noted early trades were initiated around 4.50%, later eased and touched the level of 0.75%.

 

 

However, rates continued to fall sharply in term market with one month repo bids and offers at 1.25% and 1.50% and trades in the respected tenors were witnessed at 1.25%, while three months activity was reported at the lows 1.75%. Six months activity was hard to come by but bids and offers were quoted in the band of 1.60% and 1.70%. Past week aggressive trading was noted in the bond market where trades in the latest ten year PIB issue 30/06/03 was executed in the band of 5.10% to 5.00% as most of the market players are keen to show their capital gains on the fiscal year end but after 30th June yield on these papers fall down and activity was noted around 4.75%. Heavy activity was seen in T-bills past week as after the heavy PIB target, market is of the view that upcoming T-bill target will be less then the maturing amount of Rs. 68.00 billion due to which heavy activity was seen in the secondary market where trades in near one year to maturity T-bill was noted around 1.90%. The T-bill auction is due in the coming week where aggressive participation is expected and we feel that the downward adjustment of around 15 to 20 basis points is expected.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.15

02.20

06.50%

2 Year

02.75

02.80

07.25%

3 Year

02.95

03.00

07.80%

4 Year

03.80

03.50

08.80%

5 Year

04.00

03.90

09.10%

10 Year

04.80

05.20

09.90%

 

 

 


 

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

10 Jun

68,005 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.60

00.50

01.00

1 Week

00.80

02.50

02.25

1 Month

01.25

02.10

04.70

3 Month

01.55

01.80

05.10

6 Month

01.65

01.85

05.60

1 Year

02.10

02.20

06.25

 

 

 


 

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

1 Month

01.65

02.40

05.10

2 Month

01.50

02.00

05.00

3 Month

01.65

01.90

05.20

4 Month

01.70

01.90

05.50

5 Month

01.70

01.85

05.60