FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  08, 2003

 

Contrary to last week, the inter-bank market opened at the lower side and overnight activity remained below the one percent mark for most part of the week. As overnight funds changed hands at lower levels, the short term rates also remained under pressure. One and two weeks rates were quoted in; the band of 0.75% to 1.25% initially, but it was on Thursday when rates took a hike mainly because of the settlement of PIB auction. The State Bank of Pakistan conducted OMO on the same day and injected total amount of Rs.7.30 bn in one and two week at the rates of 1.75% and 2.00% respectively. This inflow turned to be insufficient to ease the rates and market remained at the higher side due to which activity in one and two week was witnessed as high as 2.75% and 2.50%.

 

 

One month was initially traded around 1.40%, but later on bids and offers were available in the range of 1.75% and 2.10% but no major activity was seen at these levels. Trades in three and six months were witnessed at 1.55% and 1.70% at the start of the week, but closed at 1.70% and 1.85% for the respected tenors. Central Bank took the market by surprise by accepting more than the target amount which was Rs.15 bn and accepted around Rs.27.0 bn in the latest PIB auction at the cut-off yields of 4.10%, 5.12% and 6.17% for 3, 5 and 10 years respectively. Prior to the auction, trades were witnessed between 6.20% to 6.26% but buying interest after the result was seen in the range of 6.09% and 6.12%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.40

02.40

06.70%

2 Year

03.00

02.90

07.00%

3 Year

04.00

03.80

07.20%

4 Year

04.60

04.40

07.70%

5 Year

04.98

04.80

08.10%

10 Year

06.15

06.16

09.10%

 

 

 


 

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

04.50

00.60

08.93

1 Week

03.00

01.00

08.13

1 Month

02.00

01.45

07.13

3 Month

01.80

01.50

06.45

6 Month

01.85

01.60

06.38

1 Year

02.25

02.05

06.60

 


 

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

1 Month

02.00

01.60

07.50

2 Month

01.90

01.55

06.75

3 Month

01.70

01.45

06.60

4 Month

01.70

01.55

06.50

5 Month

01.65

01.60

06.40