FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 30, 2003

 

Volatility was prevailed duning the week, initially trades in overnight were witnessed at the lower side but as the week progressed rates touched the higher levels and activity was executed around 4.50%. With the overnight rates at the higher side one and two week also saw a hike and touched the levels of 3.00% and 2.25% at the tail end of the week. This hike in rates was apparently due to the significant outflows on behalf of export refinance and also because that the liquidity was kept with the few banks. The one month level of 1.10% at the start of the week was seriously hit by the prevailing conditions and finally took a hike and deals were dealt around 1.90%.

 

 

The longer tenors of three and six months also came under pressure and sharp rise was noted with the bids for these tenors were quoted around 1.20% to 1.25% against the offers at 1.60% to 1.70%. As the rates bounced to the higher side keen selling was noted in T-bills and banks are willing to offload their latest six months T-bill even above the cut-off yield at 1.30%, but no activity was seen in the respective paper. Aggressive trading was witnessed in long term securities, where latest issue of 10 year PIB was traded initially in the band of 4.82% to 4.84%. Later, hiked and trading was seen at the higher side at 5.00%, but eventually traded around 4.95%. This hike in PIB yield was mainly because the market is expecting heavy target amount in coming PIB auction due to which banks are booking profits by offloading these PlBs. T-bill one year auction is aiso due in coming week, against the maturing amount of around Rs. 31.00 biilion. Market is of the view that the SBP will match the maturing amount as target and upward adjustment in the cut-yield is aiso expected.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

01.75

01.50

06.70%

2 Year

02.50

02.40

07.25%

3 Year

03.00

02.80

07.60%

4 Year

03.50

03.00

08.00%

5 Year

03.90

03.65

08.40%

10 Year

05.00

04.82

09.40%

 

 

 


 

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

04 Sep

30,650 Mln.

 

 

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

04.50

01.75

08.95

1 Week

03.50

01.50

07.00

1 Month

01.85

01.15

06.15

3 Month

01.50

01.10

05.80

6 Month

01.55

01.20

05.95

1 Year

01.75

01.50

06.50

 

 

 


 

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

1 Month

02.00

01.40

06.60

2 Month

01.70

01.35

06.20

3 Month

01.60

01.30

06.00

4 Month

01.50

01.35

06.10

5 Month

01.45

01.30

06.10