FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated October 18, 2003

 

The money market remained volatile during the week with overnight trades witnessed in the range of 0.25% to 1.75%. The six months T-bill auction target of Rs.10.0 bn against maturity of Rs.1.75bn of OMO was the main reason for the hike in rates which later eased off as the Central Bank scrapped all bids. The result also caused 10 year paper to trade as low as 6.15% which was earlier traded between 6.25% and 6.15%. The SBP conducted OMO after rejection of auction and mopped up Rs.8.4 bn at the rate of 0.95%, 0.98% and 1.09% in one, two and four week respectively. The market was long even after the OMO that kept the money market rates on the lower side. The yields on both T-Bills and PIBs closed low on the weekend.

 

 

Rates for shorter tenors rose after the announcement of auction target and initial activity in one and two week took place at 1.60% and 1.50% and closed at 0.50% and 0.75%. One month was active during the week where funds were seen changing hands initially at 1.60% and later at 1.25% and 1.00%. Deals in 45 and 75 days were executed at 1.65% and 1.70%. Three and six months trades were witnessed at 1.70% and 1.75% at the start but closed at 1.35% and 1.60%. The T-Bill secondary market was active in one year and six months to maturity papers. In anticipation of six months T-bill auction rates for all the previous issues hiked and deals in close to one year to maturity papers were reported at 1.95%. However, six months T-bill was traded at 1.75%. It was only after the cancellation of the auction that yields decreased with one year paper and latest six months T-bill trading at around 1.70% and 1.45% respectively. At start of the week bids in 10 year PIBs carrying 11% and 9% coupon were quoted at 6.20% against offers at 6.10%, while trades were seen at 6.20%. The bond market closed at 6.15% and 6.10% after auction.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.30

02.60

06.60%

2 Year

03.40

03.50

06.85%

3 Year

03.00

04.00

07.10%

4 Year

04.60

04.50

07.60%

5 Year

05.00

05.10

08.10%

10 Year

06.14

06.18

09.30%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Oct 15 T-Bill 06 mth. Oct 15 Oct 16

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.10,000 Mln.

Rs.21,100 Mln.

Reject

 


 

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

00.40

00.75

08.90

1 Week

00.65

01.25

07.25

1 Month

01.15

01.60

06.40

3 Month

01.40

01.70

06.20

6 Month

01.60

01.85

06.30

1 Year

01.90

02.25

06.60

 


 

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

1 Month

01.30

02.00

06.70

2 Month

01.35

01.90

06.35

3 Month

01.40

01.85

06.25

4 Month

01.40

01.85

06.25

5 Month

01.45

01.90

06.25