FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  13, 2003

 

This week the market remained surplus of liquidity due to which rates were quoted at the lower end of the spectrum. Overnight funds changed hands in band of 0.25% and 0.50% for most part of the week, but on Friday temporary hiked and traded around 1.50%, but closed in the band of 0.25% and 0.60%. Volatility was witnessed in one week and initial deals were struck around 1.25%, but later on due to heavy borrowing pressure, activity in the respective tenor was observed in the range of 2.25% and 2.50%.

 

 

In two weeks rates were quoted more or less in the same band and no major movement was seen. Banks prefer to cover their positions in medium term due to which major activity was conducted in one month tenor and activity took place as high as 2.40%. Three and six month saw no major activity. However, few deals were evident around 2.00% in three months. This week State Bank conducted six month T-bill auction and received total amount of Rs. 7.850 billion against the target of Rs. 3.00 billion. The Central Bank accepted meagre amount of Rs. 300 million at the previous cut-off which is 1.6581%. In long term securities PIB ten year issue of 06/10/03 was the most active, where early trades were seen as low as 6.08%, but after the news regarding the issuance of fifteen and twenty year PlBs heavy selling pressure was present in the market, due to which trading in the respective paper was seen as high as 6.25%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.40

02.40

04.20%

2 Year

03.20

02.80

05.00%

3 Year

03.95

03.75

05.40%

4 Year

04.40

04.20

05.40%

5 Year

05.05

04.78

05.75%

10 Year

06.30

06.10

06.60%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Dec 10 T-Bill 06 mth. Dec 10 Dec 11

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.3,000 Mln.

Rs.7,850 Mln.

Rs.500 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

01.75

00.75

07.33

1 Week

02.50

01.75

06.25

1 Month

02.45

01.95

05.25

3 Month

02.10

01.95

04.40

6 Month

01.95

01.95

04.15

1 Year

02.25

02.15

04.35

 


 

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

1 Month

02.75

02.10

05.75

2 Month

02.30

02.00

04.75

3 Month

02.15

01.70

04.50

4 Month

02.10

01.80

04.30

5 Month

02.05

01.85

04.25