FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated October 04, 2003

 

Volatile conditions prevailed during the week in the inter-bank market. Overnight rates were initially quoted at the lower levels, and trades were witnessed around 0.50%. Market took a U-turn when State Bank conducted its OMO and mopped up Rs. 21 billion in one week at the rate of 0.90%. After this outflow, market took a hike and activity took place in the band of 2.50% and 3.00%. SBP also conducted another OMO on Thursday and accepted Rs. 2.8 billion in one week at the rate of 0.89% and Rs. 1.75 billion in two weeks at the rate of 1.00%.

 

 

Due to these outflows banks had to approach SBP for respite and discounting of Rs. 2.8 billion was reported on Friday. In the term market, rates almost in every tenor hiked, but no major activity was seen as lenders preferred to hold on to their liquidity for the upcoming PIB auction. This week State Bank conducted its T-bill auction of three and twelve months and received total bids of around Rs. 25.9 billion. Central Bank accepted only Rs. 1.5 billion in three months at the cut-off yield of 1.5082% and rejected all the bids in one year. Uncertainty over the interest rates direction kept the bond market volatile ahead of the week-end PIB auction, and trading in the early part of the week took place around 6.25%. But after the rejection of one year T-bill auction, sharp fall in yields on ten year PIB when issue was noted and the touched lower level of 5.80%. Near to the end of the week, yields bounced back and trading was observed in the band of 6.15% and 6.25%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.60

02.60

06.35%

2 Year

03.40

03.50

06.80%

3 Year

04.20

04.10

07.05%

4 Year

04.75

04.60

07.25%

5 Year

05.25

05.10

08.85%

10 Year

06.20

06.25

08.85%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Oct 01 T-Bill 03 mth Oct 01 Oct 02
Oct 01 T-Bill 12 mth. Oct 01 Oct 02

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.15,000 Mln.

Rs.25,900 Mln.

Rs.1,500 Mln.

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

02 Oct

12,150 Mln.

T-Bill

30 Oct

62,450 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

05.00

00.60

08.90

1 Week

03.00

01.00

08.50

1 Month

01.80

01.30

06.65

3 Month

01.85

01.55

05.95

6 Month

02.00

01.80

06.00

1 Year

02.35

02.35

06.25

 

 

 


 

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

1 Month

01.90

01.40

07.00

2 Month

01.85

01.50

06.50

3 Month

01.80

01.60

06.10

4 Month

01.90

01.70

06.00

5 Month

01.95

01.80

06.00