FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 16, 2003

 

The week saw volatility and trades were executed in a wide band of 0.25% and 3.00%. Initially, rates were quoted on the lower side. Later, as the week progressed, rates took a hike and activity in overnight took place as high as 3.00%. This hike in rates was mainly due to the liquidity which was kept back by few banks. As the overnight market hiked, one and two-week rates were also came under pressure and were quoted in a band of 1.00% and 1.50%. No major change in long term was seen and bids for three and six-months were quoted in the band of 0.75% and 0.90% against offers at 0.85% and 1.10%.

 

 

Heavy demand was noted in one-year to maturity papers with bids for latest issue of August 7, 2003 quoted at 1.30% and one-year T-bill of July 10, 2003 at 1.35%. While offers for the same issues were available in the range of 1.25% and 1.30%. Trades in the respective papers were significant at 1.25% and 1.30% during the past week. Nominal activity was witnessed in long term securities and latest PIB ten year issue of June 30, 2003 was initially traded at 4.58% and closed with bids quoted at 4.60% while the offers were available at 4.57%.

The market is of the view that the inflow of Rs.8.0 bln of OMO maturity will ease the overnight rates in the coming week. The six-month T-bill auction is also due in the coming week and market expects that the SBP will match the maturing amount i.e., Rs.22.55 bln as target amount and heavy demand will cause a downward adjustment in the cut-off yield.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

01.00

00.40

01.05

1 Week

00.65

00.40

04.50

1 Month

00.75

00.55

05.00

3 Month

00.75

00.65

05.45

6 Month

01.05

00.90

05.85

1 Year

01.35

01.20

06.45

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Aug 06 T-Bill 03 mth. Aug 06 Aug 07
Aug 06 T-Bill 12 mth. Aug 06 Aug 07

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.45,000 Mln.

Rs.95,312.2 Mln.

Rs.51,950 Mln.

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

07 Aug

44,625 Mln.

T-Bill

21 Aug

22,500 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Month

01.00

00.80

05.50

2 Month

01.00

00.75

05.60

3 Month

00.95

00.75

05.60

4 Month

00.95

00.80

05.85

5 Month

01.00

00.85

06.00

 


 

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

1 Year

01.40

01.25

06.60%

2 Year

02.00

01.90

07.20%

3 Year

02.40

02.35

07.70%

4 Year

03.00

03.00

08.00%

5 Year

03.40

03.38

08.70%

10 Year

04.58

04.56

09.65%