FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated October 25, 2003

 

The interbank money market remained quite volatile throughout the week and overnight activity was seen in the wide band of 1.25% to 5.50% until Thursday, but on Friday, the rates eased and deals were evidenced at 0.35% and 0.50%. This decline in the overnight rates was due to the Central Bank's intervention in the market through OMO in which Rs.3.50 bn were injected in one week at the rate of 2.10%. Market participants covered their positions in short tenor at 1.00% and 1.25% at the beginning of the week and bounced back later on with activity reported at 4.00% and 2.65% in one and two week.

 

 

However, at close deals were evident at 1.25% and 1.50% in the respected tenors. Slight interest was seen in medium tenors where deals were witnessed at the levels of 1.60% and 1.70% in three and six months but no major activity took place in one month.

The T-Bill secondary market was active throughout the week and seven months to maturity paper was traded at 1.70% and deals in one year T-bill were seen at 1.80% and 1.85%. In bond market trades in ten year PIB issue of 6th October 2003, being conducted initially at 6.18% but more demand brought the yields down and at the ciose of the week deals were seen at 6.12%. The one year and three month T-Bill auction is due in the coming week and the market participants were expecting that the SBP will match the target amount with the maturing amount of Rs.62 bn. Due to the huge target amount market is expecting that SBP will maintain the last cut-off rates which is close to 2.00% and 1.50% respectively.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.40

02.30

06.75%

2 Year

02.90

03.40

06.90%

3 Year

03.80

03.00

07.05%

4 Year

04.40

04.60

07.60%

5 Year

04.80

05.00

08.05%

10 Year

06.12

06.14

09.10%

 

 

 


 

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

01.25

00.40

08.90

1 Week

03.00

00.65

08.50

1 Month

01.90

01.15

06.85

3 Month

01.55

01.40

06.40

6 Month

01.65

01.60

06.40

1 Year

01.95

01.90

06.70

 

 

 


 

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

1 Month

02.10

01.30

07.10

2 Month

01.70

01.35

06.75

3 Month

01.45

01.40

06.50

4 Month

01.55

01.40

06.40

5 Month

01.60

01.45

06.40