FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  15, 2003

 

Volatility was observed in inter-bank money market and overnight activity was witnessed in the wide band of 2.00% and 7.00% throughout the week. This week State Bank intervened twice through its Open Market Operation to ease the market and injected around Rs. 25.00 billion. This inflow temporarily eased the rates but later bounced back to the higher levels and at the weekend closed with overnight activity conducted in the range of 6.00% and 6.50%. One and two week activity was conducted in the band of 2.25% and 2.50%, but no major lending was seen in the respective tenors. One month was initially traded at 2.00% but at close due to borrowing pressure, deals were executed at 2.40%.

 

 

This week SBP conducted six months T-bill auction and accepted only Rs.200 million at the cut-off yield of 1.6581 % against the pre-auction target of Rs. 2.00 billion. Trading in long-term securities continued and initial activity in when issue ten year PIB took place at 6.17%. Later on rates eased-off with trades seen as low as 6.12%, but at the close of the week rates again bounced back and activity was witnessed in the band of 6.15% and 6.17%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.50

02.40

06.40%

2 Year

03.00

03.00

06.80%

3 Year

03.98

04.00

07.00%

4 Year

04.60

04.60

07.20%

5 Year

05.00

04.98

07.90%

10 Year

06.15

06.15

08.90%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Nov 12 T-Bill 06 mth. Nov 12 Nov 13

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.2,000 Mln.

Rs.5 900 Mln.

Rs.200 Mln

 


 

 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

27 Nov

27,400 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

02.50

04.50

00.60

1 Week

02.75

03.00

01.50

1 Month

02.25

02.00

04.25

3 Month

02.10

01.80

05.80

6 Month

02.00

01.85

05.70

1 Year

02.30

02.25

06.15

 


 

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

1 Month

02.40

02.00

04.75

2 Month

02.15

01.90

05.40

3 Month

02.10

01.70

05.60

4 Month

02.00

01.70

05.65

5 Month

01.85

01.65

05.70