FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated July 12, 2003

 

Due to the flooded interbank money market rates remained under pressure almost in every tenors throughout the week and no change in the market trend was evident. The T.bill rates were continued to ease in the secondary market.Due to the prevailing liquidity and with no major outflow from the system overnight activity was confined in the narrow band of 0.25% and 1.00%. As the overnight rates were at the lower levels one and two week was also remained below one percent mark.

 

 

No aggressive covering was seen in long term due to which rates in three and six months eased and touched the levels of 1.50% and 1.65% where insignificant trades was witnessed. Past week State Bank conducted its T-bill auction with the pre-auction target of around Rs. 70.00 billion in three month and one year against the maturity of Rs. 68.00 billion. As per expectation heavy participation of around Rs. 153 billion was witnessed. State Bank accepted Rs. 8.00 billion in three months maintaining the cut-off yield of 1.6575%, however, in one year T-bill State Bank accepted Rs. 69.20 billion with the cut-off yield of 2.1719%, which is around 20 basis point lower, then the previous cut-off. Due to the excess liquidity in the system yields on the T-bills eased in the secondary market and trades in nine to ten months maturity T-bill was traded in the band of 1.95% and 2.10% prior to auction. After the T-bill auction aggressive buying pressure was seen in latest one year T-bill and traded at 1.90%, which later on fall like ninepins and touched the levels of 1.50%. Activity in nine to ten months maturity papers was witnessed as low as 1.40%. Past week aggressive activity was noted in bond market, early trades in latest ten year PIB was executed around 5.00%, later due to the buying pressure activity was seen as low as 4.70% in the respective paper. Trades in paper carrying 13% and 14% coupon traded around 4.65%.

No major change in the market scenario is expected in days to come and rates are expected to remain at the prevailing levels.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.35

00.60

08.95

1 Week

00.55

00.80

08.25

1 Month

01.00

01.25

07.60

3 Month

01.30

01.55

06.35

6 Month

01.30

01.65

06.35

1 Year

01.55

02.10

106.90

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jul 09 T-Bill 03 mth Jul 09 Jul 10
Jul 09 T-Bill 12 mth Jul 09 Jul 10

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.70,000 Mln.

Rs.153,325 Mln.

Rs.77,200 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

10 July

68,005 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Month

01.25

01.65

08.00

2 Month

01.25

01.50

06.80

3 Month

01.30

01.65

06.45

4 Month

01.35

01.70

06.40

5 Month

01.35

01.70

06.40

 

 

 


 

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

1 Year

01.75

02.15

07.00%

2 Year

02.25

02.75

07.50%

3 Year

02.75

02.95

07.90%

4 Year

03.00

03.80

08.00%

5 Year

03.70

04.00

08.90%

10 Year

04.75

04.80

09.90%