FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  06, 2003

 

Volatility was witnessed throughout the week and overnight activity took place in the wide band of 3.00% and 0.25%. Due to the total inflow of around Rs. 14.00 bn overnight activity opened at the lower side and deals were executed in the band of 1.00% and 1.50%. As the week progressed due to the OMO maturity, market took a hike and activity was evident as high as 3.00%. Again SBP came forward to rescue the market and injected total amount of Rs. 16.45 bn in one and two weeks at the rate of 2.00%. After SBP

 

 

intervention,  rates almost in every tenor eased. One week touched the rock bottom level of 0.50%, two weeks bids and offers were quoted in the band of 1.00% and 1.50%. This week the most active tenor was one month as its maturity cross over 31 Dec, initially deals in respective tenor was seen around 2.35%, later comparatively eased and bids and offers were quoted in the band of 1.80% and 2.25%. Due to the aggressive lending three month saw a sharp fall and activity in the respective tenor was dealt around 1.75%. Six month tenor saw no major activity and rates remained stagnant however, bids and offers were quoted in the band of 1.80% and 2.10%. This week SBP conducted its PIB auction and accepted total amount of Rs. 13.67 bn in 3, 5 and 10 year at the cut-off yields of 3.9489%, 5.0008% and 6.2269%. Aggressive trading was witnessed in 3 and 5 year PIB prior to auction. Initial trades were witnessed at 4.00% in three year and 5.00% in five year, but due to the buying pressure touched levels of 3.90% and 4.97%. Short selling in 10 year PIB was noted as high as 6.20%, but after the auction heavy corporate demand pushed the yields at lower side and activity was observed as low as 6.08%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.40

02.50

04.70%

2 Year

02.80

03.00

05.00%

3 Year

03.75

04.00

05.30%

4 Year

04.20

04.60

05.30%

5 Year

04.78

05.00

05.75%

10 Year

06.10

06.16

06.80%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Nov 25 T-Bill 03 mth. Nov 25 Dec 01
Nov 25 T-Bill 12 mth. Nov 25 Dec 01

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.5,000 Mln.

Rs.7,900 Mln.

Rs.200 Mln

 


 

 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

01 Dec

24,400 Mln.

T-Bill

26 Dec

22,650 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.75

01.85

02.75

1 Week

01.75

02.00

05.00

1 Month

01.95

02.15

04.50

3 Month

01.95

02.05

04.10

6 Month

01.95

02.10

04.20

1 Year

02.15

02.25

04.50

 


 

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

1 Month

02.10

02.25

05.00

2 Month

02.00

02.20

04.40

3 Month

01.70

02.10

04.10

4 Month

01.80

02.00

04.15

5 Month

01.85

01.90

04.15