FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  22, 2003

 

State Bank continued the same policy by intervening through OMO to remove the liquidity shortage which was mainly due to some traditional outflows. Week started with overnight activity dealt around 4.00% but after the injection of around Rs. 15.95% by SBP in two weeks at the cut-off yield of 2.00%. Market saw a sharp fall and overnight rates touched the rock bottom level of 0.25%. Prior to OMO, one and two weeks activity took place around 3.50% and 2.75%, but later on funds in respected tenors were available around 1.50% and 1.75% against the bids at 0.75% and 1.60%. Banks restricted themselves to the shorter tenors due to which no major activity was witnessed in term repo side. However, borrowing interest in three and six months was available around 1.75% and 1.85% against the offers at 2.10%.

 

 

Aggressive trading in long-term securities continued this week as well, and trades in spot value for ten year PIB issue of 06/10/03 was witnessed as high as 6 20%, but near to the end of week activity was witnessed around 6.16%. Activity in when issue ten year PIB was seen in the band of 6.15% to 6.18% throughout the week. Heavy demand for latest three year PIB pushed the yields at the lower side and trading was seen at the levels of 3.95% and 3.90%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.50

02.50

05.10%

2 Year

03.00

03.00

05.70%

3 Year

04.00

03.98

06.00%

4 Year

04.60

04.60

06.00%

5 Year

05.00

05.00

06.35%

10 Year

06.16

06.15

07.35%

 


 

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

01.85

02.50

02.75

1 Week

02.00

02.75

03.25

1 Month

02.15

02.25

03.75

3 Month

02.05

02.10

04.10

6 Month

02.10

02.00

04.60

1 Year

02.25

02.30

05.00

 


 

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

1 Month

02.25

02.40

04.25

2 Month

02.20

02.15

04.35

3 Month

02.10

02.10

04.25

4 Month

02.00

02.00

04.35

5 Month

01.90

01.85

04.50