FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Sept 06, 2003

 

The market reacted as per-expectation after the announcement of T-bill target and rates across the board hiked. Overnight activity after witnessed comparatively at the lower levels i.e., 1.00% and 1.25%, took a hike and touched the levels of 4.75% and 5.00%. Contrary to past few weeks this week pressure was shifted to the borrowers side and volatility was seen almost in every tenor. Due to the overnight one and two weeks saw sharp rise and activity was observed around 4.00% and 2.50% in the respected tenors. It was on Thursday where market take a U-turn and rates almost in every tenor eased and till the end of the week activity in overnight, one and two weeks took place at the rock bottom levels of 0.25%, 0.75% and 0.85%. 

 

 

Same trend was evident in term market, where activity in one month after observing in the band of 1.75% and 2.00%, fell like ninepins and touched the level of 1.00%. Three and six months initially quoted at the higher side but later, eased and borrowing interest was present at 1.00% and 1.20%, against the offers at 1.30% and 1.50%, but no significant activity was witnessed.

This week State Bank conducted its one year and three months T-bill auction with the target amount of Rs. 30.00 billion against the maturity of around Rs. 31.00 billion. Due to the heavy demand for these papers participation of Rs. 43.55 billion was noted. As it was expected State Bank increase the cut-off yield on these designated papers and accepted Rs. 3.700 billon in three months at the cut-off yield of 1.3949% which is around 30 basis points higher then the previous cut-off and Rs.16.100 billion in one year at the cut-off yield of 1.9942% which is around 58 basis points higher then the previous cut-off. Desperate buying interest was present in the secondary market after the auction and trades in this latest one-year paper was executed around 1.70%. In PIBs ten year aggressive selling was continued due to which hike in PIB yields were seen and after traded in the band of 5.00% and 5.05% initially touched the level of 5.15%.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

01.80

01.75

06.75%

2 Year

02.45

02.50

07.20%

3 Year

03.05

03.00

07.40%

4 Year

03.50

03.50

08.00%

5 Year

04.00

03.90

08.45%

10 Year

05.11

05.00

09.45%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Sep 03 T-Bill 03 mth. Sep 03 Sep 04
Sep 03 T-Bill 12 mth. Sep 03 Sep 04

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.30,000 Mln.

Rs.43,550 Mln.

Rs.19,800 Mln.

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

04 Sep

30,650 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.20

04.50

08.90

1 Week

00.55

03.50

07.75

1 Month

00.95

01.85

06.25

3 Month

01.05

01.50

06.10

6 Month

01.30

01.55

06.15

1 Year

01.80

01.75

06.65

 

 

 


 

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

1 Month

01.10

02.00

06.65

2 Month

01.15

01.70

06.40

3 Month

01.20

01.60

06.10

4 Month

01.25

01.50

06.20

5 Month

01.25

01.45

06.25