FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  01, 2003

 

The inter-bank money market during most part of the week remained at the higher side and initial trades in overnight were witnessed in the band of 3.00% and 3.50%. This week no intervention by State Bank was seen due to which rates remained at the higher side throughout the week. It was on Thursday when rates eased-off and activity was conducted in the band of 0.50% and 1.00%, but at the end of the week market bounced back to the higher side. As overnight rates remained at the higher levels therefore, most of the banks preferred to cover their positions in one and two weeks. Initially trades were seen at 3.00% and 2.25%, but later as the market eased deals in the respected tenors took place around 1.00% and 1.25%.

 

 

One month was quiet and no major movement was observed. However, bids and offers were quoted in the band of 1.35% and 1.60%. Long term market was also quiet and no major activity was seen in three and six months. SBP conducted three months and one year T-bill auction and accepted Rs.39.05 bn against a pre-auction target of Rs.45.0 bn, maintaining cut-off yield for one year T-bill i.e. 1.9942%. However, three month rate slightly decreased by 2 basis points with cut-off rate at 1.4824%. After the auction result, trading in this latest one year issue in secondary market was witnessed in the band of 1.80% and 1.90%. The PIB latest issue of 6th October, 2003 was traded at 6.15%, however, short selling in the coming issue was reported as high as 6.17%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.40

02.40

06.40%

2 Year

02.90

02.90

07.15%

3 Year

03.80

03.80

07.30%

4 Year

04.40

04.40

07.60%

5 Year

04.80

04.80

08.25%

10 Year

06.16

06.12

09.25%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Oct 29 T-Bill 03 mth. Oct 29 Oct 30
Oct 29 T-Bill 12 mth. Oct 29 Oct 30

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.45,000 Mln

Rs.53,950 Mln.

Rs.39,050 Mln

 


 

 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

27 Nov

27,400 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.60

01.25

08.93

1 Week

01.00

03.00

08.93

1 Month

01.45

01.90

07.00

3 Month

01.50

01.55

06.45

6 Month

01.60

01.65

06.38

1 Year

02.05

01.95

06.60

 


 

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

1 Month

01.60

02.10

08.83

2 Month

01.55

01.70

06.75

3 Month

01.45

01.45

06.65

4 Month

01.55

01.55

06.60

5 Month

01.60

01.60

06.50