FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 23, 2003

 

This week interbank market went through a volatile phase and market experienced a roller coaster ride. At the start of the week, rates remained at the lower side of the yield curve and initial trades were struck in the band of 0.50 and 1.00%. But by the mid of week rates took a hike and activity was seen as high as 4.00%. Pressure was also seen in one and two weeks where early activity took place around 0.60% and 0.75% prior to T-bill auction. Later, due to the borrowing pressure activity in respective tenor was witnessed at the levels of 2.75% and 2.25%. One month also saw a hike, where bids and offers were quoted in the band of 1.20% and 1.50%, deals were executed around 1.20%. 

 

 

Same trend was noted in long term market, where rates also hiked and three and six months borrowing interest was present at 1.00% and 1.15% against the offers at 1.20% and 1.35% but no significant trades were witnessed. State Bank conducted its six months T-bill auction with the pre-auction target of Rs. 32.00 billion. Heavy participation of Rs. 56.30 billion was noted. State Bank accepted total amount of Rs. 36.70 billion at the cut-off yield of 1.2715%, which is around 08 basis points lower then the previous cut-off. Trading in when issue T-bill was noted in the band of 1.10% to 1.15%. As the rates took a hike after the T-bill auction aggressive selling was noted in latest six months T-bill and banks are willing to sell their paper just below the cut-off at 1.25%, but no major buying was noted except the few bids present at 1.30%. Volatility persisted in the bond market where early trades in latest ten-year PIB was executed around 4.60%, but later due to the selling pressure yield hiked and activity was seen as high as 4.70%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

01.50

01.40

06.75%

2 Year

02.40

02.00

07.25%

3 Year

02.80

02.40

07.60%

4 Year

03.00

03.00

08.00%

5 Year

03.65

03.40

08.50%

10 Year

04.82

04.58

09.50%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Aug 20 T-Bill 06 mth. Aug 20 Aug 21

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.32,000 Mln.

Rs.56,300 Mln.

Rs.36,700 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

Overnight

01.75

01.00

07.25

1 Week

01.50

00.65

06.30

1 Month

01.15

00.75

05.80

3 Month

01.10

00.75

05.60

6 Month

01.20

01.05

06.00

1 Year

01.50

01.35

06.55

 


 

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

1 Month

01.40

01.00

06.30

2 Month

01.35

01.00

06.00

3 Month

01.30

00.95

05.80

4 Month

01.35

00.95

05.90

5 Month

01.30

01.00

06.00