FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated July 26, 2003

 

No major change in the market scenario was noted and activity was seen at the lower side of the yield curve. Initial activity in overnight was witnessed comparatively at the higher levels, but as the week progressed rates eased and touched the rock bottom levels of 0.25% and 0.50%. Same trend in term repo market was observed and bank continued the policy of covering in shorter tenors. In long-term market some stray deals were witnessed in six months where activity took place around 1.25%, but no aggressive covering was seen.

 

 

As the lenders were unable to place their funds in long term due to which aggressive trading was witnessed in bond market throughout the week. Volatility was seen in PIB ten year latest issue of 30th June, 2003 where initial deals were struck as high as 4.64% however, later by the mid of week yields eased and activity was seen as low as 4.50%. Near the end of the week yields again took hike and touched the levels of 4.60%. Past week State Bank conducted its T-bill auction with the pre-auction target of Rs. 25.00 billion as per expectation heavy participation of Rs.60.575 billion was seen. State Bank accepted total amount of Rs.27.100 billion and decrease the cut off yield by around 32 basis points in six months. After the T-bill auction heavy buying was present in latest six-month issue where trades were struck as low as 1.00%, but no major selling was noted. Buying interest was evident in near one year to maturity paper and trades in the respective T-bill were noted around 1.45%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.30

00.90

08.90

1 Week

00.60

00.75

08.50

1 Month

00.75

00.95

07.15

3 Month

00.95

01.10

06.15

6 Month

01.05

01.25

06.25

1 Year

01.50

01.50

06.60

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jul 23 T-Bill 06 mth Jul 23 Jul 24

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.25,000 Mln.

Rs.60,575 Mln.

Rs.27,100 Mln.

 

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

10 July

68,505 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Month

00.90

01.10

07.50

2 Month

00.90

01.10

07.10

3 Month

00.90

01.10

06.25

4 Month

00.90

01.15

06.15

5 Month

00.90

01.20

06.25

 

 

 


 

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

1 Year

01.60

01.65

06.85%

2 Year

02.00

02.00

07.50%

3 Year

02.45

02.45

07.85%

4 Year

03.00

03.00

08.00%

5 Year

03.45

03.40

08.85%

10 Year

04.58

04.55

09.85%