FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Sept 13, 2003

 

Surplus liquidity kept the rates at lower end of the spectrum and market remained flooded with liquidity throughout the week. No major movement in rates was seen and overnight activity was confined in the band of 0.15% to 0.25%. It was on Monday, State Bank intervenes in the market to suck the excess liquidity and conducted OMO in one week and one month. Central Bank mopped up Rs.16.30 billion at the rates of 0.99% and 1.15% in the respected tenors, market temporary touched the level of 1.00%, later eased and closes at the lower levels. One and two week rates were also remained stagnant and activity was executed around 0.75% and 0.90%

 

 

 respectively. This week one month saw a major activity and initially traded around 1.10%, finally eased and touched the level of 0.90%. Long term market was quite this week however, borrowing interest in three and six months was quoted at 1.15% and 1.30%, against the offers of 1.35% and 1.60%. After one year T-bill auction banks are expecting upward adjustment in the coming six month T-bill auction. Due to which keen selling was present in T-bills and trades in latest six months paper was dealt above the cut-off yield at 1.50%. Bids and offers in one year T-bill issue of 7th August, 2003 were quoted in the band of 1.80% and 1.70%, but no significant activity was noted. Aggressive trading was continued in bond market this week as well and buying pressure pushed the yields at the lower side. Initial deals were witnessed around 5.14% and at closed as low as 5.03% which is mainly because the market is expecting low target amount for the coming PIB auction.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.00

01.80

06.70%

2 Year

02.90

02.45

07.15%

3 Year

03.15

03.05

07.35%

4 Year

03.50

03.50

08.00%

5 Year

04.10

04.00

08.25%

10 Year

05.00

05.11

09.40%

 


 

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

00.25

00.20

01.00

1 Week

00.55

00.55

02.75

1 Month

00.85

00.95

04.80

3 Month

01.35

01.05

05.60

6 Month

01.60

01.30

05.90

1 Year

01.85

01.80

06.55

 


 

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

1 Month

01.00

01.10

05.40

2 Month

01.30

01.15

05.70

3 Month

01.35

01.20

05.80

4 Month

01.45

01.25

05.90

5 Month

01.50

01.25

05.90